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Monday, November 5, 2012

Understand Changing Definitions Of Full-Time Employees


In a presidential selection year, almost everything in our country hangs in the balance. But it's never too early to prepare for changes in company and in tax regulation. One example is the health care change act which, beginning in 2014, will mandate that companies with more than 50 Full-time Workers (FTEs) offer wellness insurance coverage policy to their employees. Additionally, companies with fewer than 25 FTEs may receive tax attributes for providing group protection of wellness.

A part-time economical operator can help you understand the advantages you need to offer, the tax attributes you may qualify for, and the least expensive way to offer wellness insurance coverage policy to your staff.

Typically, accounting firms measure the dimension a company by its annual revenue. But for requirements of health care change, a company's dimension will be determined by the variety of employees. It gets even more confusing. You might think a full-time worker is one who works more than 30 time weekly. But that's not the situation. The variety of FTEs in a firm is calculated by the count of time divided by 30. So if you have two employees working 15 time weekly, you don't have two part-timers. You have one FTE, according to health care change. As average time vary and you start adding in enough duration of hundreds of employees, this becomes the job of a highly qualified accountant and part-time economical operator.

New health care regulation could mean it's a chance to re-consider how you seek the services of people. If you have to offer protection of wellness, anyway, it might sound right financially to seek the services of one full-timer over two part-timers.

On the other hand, you might consider hiring 1099 companies to perform certain tasks that can be completed off-site, or bring on separate companies for short-term perform. A part-time economical operator can explain the difference between 1099 companies and employees, so that you don't incorrectly classify an worker as a 1099 contractor, which can cause big trouble.

And, just in situation you were wondering, a virtual accountant and part-time economical operator are not employees of your company. You don't have to pay insurance coverage or offer health care protection or other advantages. Because they perform almost, from their own offices, there's never any question about separate status. Not only do they help simplify the strategies of determining FTEs for health care protection requirements, they don't add to the confusion (or the costs!) either.



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