Video instructions and help with filling out and completing How Form 5495 Applicable

Instructions and Help about How Form 5495 Applicable

Hi I'm Michelle and I work for the Internal Revenue Service if you're an employer the size of your work force determines some of your requirements under the health care law although the vast majority of employers have a workforce size that falls below the threshold for several of these tax provisions applicable large employers or a Alize have specific reporting requirements and are subject to the employer shared responsibility provisions your workforce size during the current year determines your ala status for the next year it's important to determine your ala status each year because changes in the size of your workforce can affect your status and your requirements from one year to the next so let's look at how you determine your workforce size and ele status you're considered an ala if the average size of your monthly workforce for the prior calendar year was 50 or more full-time employees including full-time equivalents for these tax provisions employees are considered full-time for a calendar month if they average at least 30 hours of service per week or 130 hours per month now to determine the number of full-time equivalent employees at the monthly hours worked by the employees who are not full-time but don't include more than 120 hours for any employee then divide that total by 120 we have several examples on irs.gov to help you figure out which employees to count and how to count them including special rules for seasonal employees here's one more thing to keep in mind if your business is part of a larger group of employers or businesses that are under common ownership or control you may be considered an ala even though your workforce is smaller than 50 employees to determine the ala status of the entire group average all the full-time employees including full-time equivalents for the entire group the ala status of the combined group applies to each employer within the group for more information on how to determine your ala status and what your next steps are visit irs.gov slash ACA you