Seasonal Employees (not workers)

[beartd]

I have been reading the ACA regs on seasonal employee (not worker) trying to make a determination as to whether an uptick in business (summer months or spring etc) which is pretty predictable and the workers hired to deal with the uptick would qualify as seasonal employees. For example, could an accounting firm hire a bunch of accountants for 80 hrs a week for 4 months over tax season. Or do UPS drivers hired for 3 months to deal with the X-mas / Holiday rush qualify for seasonal status. What about a manufacturing company who has a busy season based upon demand (people buy product X usually in spring) who hire workers for 6 months. The nature of the work isn’t seasonal (not based upon a time of year such as fruit pickers or ski instructors) however the busy season is based upon a business seasonal increase in business.

Any thoughts would be appreciated. The regs aren't that helpful ...

[J Simmons]

I have been reading the ACA regs on seasonal employee (not worker) trying to make a determination as to whether an uptick in business (summer months or spring etc) which is pretty predictable and the workers hired to deal with the uptick would qualify as seasonal employees. For example, could an accounting firm hire a bunch of accountants for 80 hrs a week for 4 months over tax season. Or do UPS drivers hired for 3 months to deal with the X-mas / Holiday rush qualify for seasonal status. What about a manufacturing company who has a busy season based upon demand (people buy product X usually in spring) who hire workers for 6 months. The nature of the work isn’t seasonal (not based upon a time of year such as fruit pickers or ski instructors) however the busy season is based upon a business seasonal increase in business.

Any thoughts would be appreciated. The regs aren't that helpful ...

I think for seasonal employees that the 6 month rule applies, hard and fast without a 'season' component. It simply is defined in the regs as "an employee who is hired into a position for which the customary annual employment is six months or less." Your tax-prep season, holiday season, etc hires would fit as seasonal employees for purposes of the Look-back Measurement Method.

[beartd]

Ok. thanks. The language in the preamble "The reference to customary means that by the nature of the position an employee in this position typically works for a period of six months or less, and that period should begin each calendar year in approximately the same part of the year, such as summer or winter." seemed to indicate that the actual "nature" of the position (not how I as the company defined the position) came into play.

Thanks

[J Simmons]

Ok. thanks. The language in the preamble "The reference to customary means that by the nature of the position an employee in this position typically works for a period of six months or less, and that period should begin each calendar year in approximately the same part of the year, such as summer or winter." seemed to indicate that the actual "nature" of the position (not how I as the company defined the position) came into play.

Thanks

I agree that carving a year-round position into three 4-month positions would not work. But if the position typically lasts six months or less, then I think you are okay. Tax prep season is 3 1/2 months because the necessary data is not known until Dec 31, and returns are due by Apr 15. That's not a manipulation by the accounting firm, but a reality dictated by an outside force (the IRS, for example).