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- School Accounting System
- Payroll
- End of Calendar Year
FAQ: An employee marked as Report as Full Time is not part of the Large Employer Calculation. Why?
The Large Employer Calculation option in Payroll strictly looks at the hours worked for employees and does not take into account if the Report as Full Time field is selected on the ACA Hours tab in the Employee File. In order to use the Large Employer Calculation option, the hours worked must have been tracked for all employees for the prior calendar year (for example, the hours worked must be tracked for all of 2022 for all employees when determining the large employer status for 2023).
The Large Employer Calculation option follows the ACA guidelines for determining the large employer status. The Large Employer Calculation calculates the total number of full-time employees in each month (those with 130 or more hours of service in the month), the total hours worked by part-time employees in the month (up to 120 hours per employee), the total number of full-time equivalents (based on the hours worked by the part-time employees in the month divided by 120), the total FTE count for each month, and an overall FTE count for the selected year.
Note: As a reminder, the Large Employer Calculation option is designed to be used by those organizations who are unsure if they are a large employer. If you have already determined you are an applicable large employer, you do not need to utilize the Large Employer Calculation option, as the data generated within this option is not used with the ACA employer reporting process for completing the 1095 and 1094 forms. For additional details on determining applicable large employer status, go to: http://www.irs.gov/Affordable-Care-Act/Employers/Determining-if-an-Employer-is-an-Applicable-Large-Employer. Also, refer to the previously posted Large Employer Calculation Option Training Tidbit.