Jump to content

Under 30 full time = no ACA penalties?


Recommended Posts

I understand penalty a and b calculations. I also see that b calculation will never be larger than a according to IRS guidance. If business has 59 Fte (so they are an ALE) but *only* 28 truly full time employees then they are shielded from both penalties, no?  Because when you subtract the “free” 30 off penalty a they would be at $0.  So, even if 4 people go and get PTC their penalty A would be $0 and their penalty B wouldn’t kick in because B can’t be bigger than A it says. So, anyone with 30 FT all year (or less) is protected from penalties, yes? 

Link to comment
Share on other sites

Yes, you are correct, I often tell employers to pick their 30 best employees and work the heck out of them but limit everybody else to less than 130 hours a month and you’re exempt from ACA ESRP penalties (but of course they still have to file the darn 1095-C forms if they’re an ALE). 

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...