Affordable Care Act – Seasonal Employee Classification

Health Care Reform

 

Q:  Under the Affordable Care Act, how many weeks can an employee work and still be classified as a seasonal employee? I’ve heard different numbers.

 

A:  You’ve heard a few different things because the law has evolved a bit as clarification on this issue has been released. However, we now know that if an employee works for your organization for less than six months, they may be classified as seasonal and the employer mandate penalties will not apply to that employee. If you are an employer that will have to comply with employer mandate reporting requirements based on your other employees, you’ll need to note any seasonal employees on the 1095-C tax form. For seasonal employees working less than six months, you will want to use the following codes:

  • Part II, Line 14 – Use code 1H for all 12 months.
  • Part II, Line 15 – Leave blank.
  • Part II, Line 16 – Use code 2D for months in which the seasonal employee works for you, and use code 2A for months the employee performs no work for you.

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