Rep. James Renacci, R-Ohio, introduced a bill in early October 2017 that would redefine who is considered a seasonal worker. This is important for companies trying to determine their
shared responsibility under the Affordable Care Act.
Under the ACA, large employers (those that employ more than 50 full-time workers) must extend health care coverage to their workforce or face paying a shared-responsibility penalty when they file their taxes.
However, if a company’s workforce meets that 50-worker threshold for only 120 days—about four months—due to seasonal workers joining the ranks, they are exempt from those requirements.
The Simplifying Technical Aspects Regarding Seasonality Act of 2017, or STARS Act, amends the Internal Revenue Code to redefine who is a seasonal worker. It was referred to the House Committee on Ways and Means on Oct. 4.
Under Renacci’s bill, seasonal employees would be explicitly excluded from employers’ headcount of full-time employees. If approved, it would also extend the period for determining a seasonal worker from four months to six, and cover workers whose services are “ordinarily performed at certain seasons or periods of the year.”