The ACA’s healthcare requirements apply to Applicable Large Employers (ALE). An ALE is any organization that employs an average of at least 50 full-time workers in the previous year. Figuring out if you qualify as an ALE isn’t as cut and dry as it might seem because there are a lot of factors to take into account concerning part-time workers, seasonal workers, and more.
The Solution to ACA Uncertainty
But don’t worry too much. There is an online time management solution called Fishbowl Workforce that makes it easy to track all of your employees’ hours and determine whether or not you qualify as an ALE.
Fishbowl Workforce lets employees scan timecards to clock in and out of work, and gives business leaders a variety of tools to stay on top of payroll, taxes, and many other things. Let’s discuss four ways Fishbowl Workforce helps small businesses comply with ACA requirements.
1. Counting Full-Time Employees
Any employee who works at least 30 hours a week is counted as one full-time employee.
This is the most straightforward way that Fishbowl Workforce helps. Fishbowl Workforce keeps track of all of your employees’ hours, enabling you to easily check which ones count as full-time employees based on their total weekly hours worked.
2. Calculating Part-Time Employees
Your part-time employees also contribute to your total number of full-time employees. To see how many they equate to, add up the weekly hours of employees who work less than 30 hours a week and then divide that total by 30. For example, two employees who work 15 hours a week count as one full-time employee.
Again, Fishbowl Workforce simplifies this process by showing you exactly how many employees fall into the category of part-time workers. And it can easily add up all of their hours each week, so all you have to do is divide that total by 30.
3. Deciding When to Count Seasonal Employees
Seasonal employees are only counted as full-time employees under special circumstances. Your total number of full-time employees must be at least 50 for a minimum of 120 days in a year. Not only that, but the sole reason you reach this number must be because of hiring seasonal workers. If you meet these criteria, you’ll need to count your seasonal employees toward your total number using the methods mentioned above.
Fishbowl Warehouse is equipped to help you track the hours of any type of employee. Whether they are full-time, part-time, or seasonal, they all clock in and out of the same system with barcodes. So you know who works how long each day and how long they have been with your company.
4. Tracking Employee Hours in Multiple Organizations
If you have at least 80 percent ownership in multiple businesses, you need to count all of those businesses as one entity and combine all of their employees to figure out if you are at the 50-employee mark.
You can use Fishbowl Workforce across all of your businesses to track your employees’ hours. Just follow the steps above to see what number your employees add up to.
Put Fishbowl Workforce to Work
In the ever-increasing complexity of managing employees and making sure you’re in compliance with the law, Fishbowl Workforce is an invaluable tool. It helps in many areas beyond complying with ACA rules. Learn more by clicking the link above. You can also download the Fishbowl Workforce app on the Apple Store.
I’ve got more to share about Fishbowl Workforce’s usefulness in navigating the ACA, so come back to the Fishbowl Blog for more in the near future.
Robert Lockard is a copywriter with Fishbowl. He writes for several blogs about inventory management, manufacturing, QuickBooks, and small business. Fishbowl is the #1-requested manufacturing and warehouse management software for QuickBooks users. Robert enjoys running, reading, writing, spending time with his wife and children, and watching movies.