For the tax forms we must issue for the Affordable Care Act (ACA) – do we need to issue them to seasonal employees since they will not be considered full-time employees? Also, can you confirm that we do not have to issue the form to part time employees (working less than 30 hours per week)?
 |
Under IRS regulations, only Applicable Large Employer (ALE) members with full-time employees are subject to the filing and statement furnishing requirements of section 6056 – and only with respect to their full-time employees.
According to the IRS’s online Q&A about Forms 1094-C and 1095-C:
Form 1095-C is not required for the following employees (unless the employee or the employee’s family member was enrolled in a self-insured plan sponsored by an ALE member):
- An employee who was not a full-time employee in any month of the year; or
- An employee who was in a limited non-assessment period for all 12 months of the year (for example, a new variable hour employee still in an initial measurement period). See the definition of Limited Non-Assessment Period in the instructions to Form 1095-C for more details.
Based on this information, it appears that your part-time employees would likely fall under the first category (not full-time in any month); and your seasonal employees may fall under the second category, depending on whether they were in a limited non-assessment period for all 12 months of the year. According to the instructions for Form 1095-C, limited non-assessment periods include:
Initial Measurement Period and Associated Administrative Period under the Look-Back Measurement Method. If an employer is using the look-back measurement method to determine whether a new employee is a full-time employee, and the employee is a variable hour employee, seasonal employee or part-time employee, the initial measurement period for that employee and the administrative period immediately following the end of that initial measurement period.
We recommend consultation with legal counsel experienced in benefits if needed for assistance in determining the status of your seasonal employees. We hope this information is helpful, and we thank you for your inquiry.