Information You Need to Use the Estimator
Before using the estimator, you need to gather some information on yourself and your employees.
You need to indicate whether you are an educational organization or another type of employer. Certain rules apply differently to educational employers from other employers.
You also need to indicate whether you were in existence during the prior calendar year (the year before the one for which you are using this estimator).
You need to indicate whether you are a member of an aggregated group, and if so, you will need to provide information about the employees of other members of the aggregated group.
To use the optional full-time employee status portion of the estimator, you need to provide details on the measurement method you use to determine full-time status. Specifically:
- Which measurement method you use,
- The starting month of your measurement period,
- If you're using the look-back measurement method:
- The length (in months) of your standard measurement period and the stability period,
- Your payroll periods - if you're using the optional payroll period method, and
- The number of days in your administrative period - if you're using one.
- If you're using the monthly measurement method:
- The starting month of your year, and
- Whether you use the weekly method
An educational organization is an organization whose primary function is the presentation of formal instruction that normally maintains a regular faculty and curriculum and normally has a regularly enrolled body of pupils or students in attendance at the place where its educational activities are regularly carried on. The term includes institutions such as primary, secondary, preparatory, or high schools, and colleges and universities. It includes Federal, state, and other public-supported schools which otherwise come within the definition. It does not include organizations engaged in both educational and non-educational activities unless the latter are merely incidental to the educational activities.
An employer is treated as not having been in existence throughout the prior calendar year only if the employer was not in existence on any business day in the prior calendar year.
Generally, applicable large employer status is determined by counting the hours of service of your employees through the previous calendar year. If you were not in existence the previous calendar year, you may still be an applicable large employer if you expect to have (and actually do have) 50 or more full-time employees (including full-time equivalent employees) during the current calendar year.
As part of estimating whether you are an applicable large employer, you need to provide basic information on your employees' hours of service. Specifically:
- The number of your full-time non-seasonal employees each month,
- The number of your full-time seasonal employees each month,
- The total hours of your non-seasonal employees that are not full-time for each month, and
- The total hours of your seasonal employees that are not full-time for each month.
In adding the total hours for your employees that are not full-time, only include the first 120 hours of service for each month.
If you are a member of an aggregated group, you also have to provide information on the number of regular and seasonal full-time employees employed by other members of the aggregated group, as well as the total hours of regular and seasonal non-full-time employees employed by other members of the aggregated group.
To use the optional full-time employee status portion of the estimator, you need to provide details for an employee's hours of service for each month during your measurement period.
If your employee is new or resuming service, you need to provide the date the employee started or returned.