Employer Mandate - Pay in Lieu of Vacation or Holiday

[rocknrolls2]

For purposes of determining whether an employee is a full-time employee (for purposes of determining liability for the excise tax), while payment for hours in which an employee is entitled to payment for a period of time in which no duties are performed (such as vacation or holiday) have to be included in hours, if the employee receives pay in lieu of vacation or holiday, is that taken into account as hours of service? The employee is getting the pay but is not taking the hours for which the employee is entitled not to perform services. It seems to me that the answer should be no. Does anyone have a different view? If so, what are your reasons for taking that view?

[leevena]

I agree with your assessment too, but I am not an expert. Everything I have read, on private and govt websites, refer to hours "worked" as the way to calculate fte. I cannot find a definition of hours worked that would include these payments.

Good luck.

[hr for me]

I agree that I would see it as a not counted. I guess I would also see how many employees it actually pushed into the FT mark. If you are only paying out say at the end of each year, etc. I wouldn't think it would change your overall numbers too terribly much.

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