Yes, seasonal and temporary workers are generally included in the Affordable Care Act (ACA) employee count when determining whether an employer is subject to the ACA’s employer mandate to provide health insurance.
Key Considerations:
- Seasonal Workers:
- The ACA requires that all full-time employees (those working 30 or more hours per week on average) are counted in determining whether an employer is an “Applicable Large Employer” (ALE). However, seasonal employees are treated slightly differently in some cases.
- According to the IRS, seasonal workers are generally included in the employee count for the purpose of determining ALE status. However, if their hours are typically limited to less than 120 days in a calendar year, and they are not expected to work full-time, they may be excluded from the calculation in certain cases when determining the employer mandate.
- Temporary Workers:
- Temporary employees (those employed for a short period) are generally counted in the total employee count unless they fall under specific exclusions or the employer qualifies for a special exemption.
- The 50-Employee Threshold:
- Employers with 50 or more full-time employees, including full-time equivalents (FTEs), are required to offer health coverage or face penalties under the ACA.
- Temporary and seasonal workers can push an employer’s employee count over this threshold, even if they are employed for short durations.
- Full-Time Equivalents (FTEs):
- For both seasonal and temporary workers, the ACA uses the concept of full-time equivalents. If a company employs multiple part-time or temporary workers, their hours may be combined to count as full-time equivalents, which can affect the employer’s ACA obligations.
Special Rules for Seasonal Employees:
- The IRS safe harbor rule allows employers to exclude seasonal employees if they work fewer than 120 days in a year and are not expected to be full-time employees. This exception is more relevant when calculating the penalties for failing to offer coverage, but not when counting total employees for the ACA requirements.
