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Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 3104
Experience:  18+ years of experience in tax preparation; 25+ years of experience as a real estate/corporate paralegal.
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Our accountant says we cannot include part time employees when

Customer Question

Our accountant says we cannot include part time employees when calculating wages for the health care tax credit. She also says that employees have to have worked for at least 120 days. However when we went to the IRS site, it is contrary to this advice. We'd like another opinion on this matter.
Submitted: 3 years ago.
Category: Tax
Expert:  Barbara replied 3 years ago.

Welcome. My name is Barbara, and it will be my pleasure to assist you with your tax question today.

 

Part-time workers are considered when calculating wages for the health care tax credit. However, those part-time workers must work more than 120 days or they are considered seasonal workers. The IRS website you cited is an excellent source of information regarding this issue and how to calculate the hours of service.

 

Please let me know if you require further information or clarification, and I will be happy to assist you.

 

Thank you and best regards,

Barb

 

 

Customer: replied 3 years ago.

so what about an instance where you hire a new full time employee but they haven't worked 120 days in the tax year. Do they still count?

Expert:  Barbara replied 3 years ago.

Hi, Donna.

 

Those employees would not count unless the criteria of either actual hours worked, days worked or works worked is met. You may choose whatever method you wish for this calculation, and it is not required to be calculated in the same manner for each employee.

 

Thank you and best regards,

Barb

Customer: replied 3 years ago.

I don't understand. The IRS code says all employees count except owners and family.

Expert:  Barbara replied 3 years ago.

Hi, Donna.

 

Thanks for your follow-up concern. I realize that all employees "count," but there is criteria that must be met. As I mentioned, the website you cited provides the criteria as well as examples of how to calculate wages.

 

Barb

Expert:  Barbara replied 3 years ago.
Hi, Donna.

Just a short note to follow-up with you to see if you require further information or clarification. If so, please come back to me here, and I will be happy to assist you.

Thank you and best regards,
Barb