Determining Large Employer Status

If you are not sure whether you are considered a large employer or if you are close to the 50 full-time employee threshold, follow these steps to determine if you will be considered a large employer:

  1. Calculate the number of full-time employees (including seasonal workers) for each calendar month in the prior year.
  2. Calculate the number of full-time equivalent employees (including seasonal workers) for each calendar month in the prior year.
    • Full-time equivalent employees  = Add the total number of hours of service of part-time employees in a calendar month and divide by 120.
  1. Add the number of full-time employees and full-time equivalent employees for each month of the calendar year.
  2. Add up the 12 monthly numbers and divide by 12.

If the result is less than 50, the employer is not a large employer.

If the result is 50 or more, the employer is a large employer.  However, the employer may not be considered a large employer if the Seasonal Worker Exception applies.

 

Seasonal Worker Exception

An employer may not be considered a large employer if:

  • The employer’s work force only exceeds 50 full-time employees for 120 days or less during the calendar year; and
  • The employees in excess of 50 who were employed during that 120 day period or less were seasonal workers.

If the result is less than 50, learn more about small employers here [insert hyperlink to small employer page].

Click here [insert link to employer survey] to fill out an easy employer survey to determine your responsibility and find out if you are a large or small employer.