IRS Issues Seasonal Employee Guidance

On November 22, the IRS issued guidance to employers that hire seasonal workers.  Under the health care law, many employers may have questions as to whether they are subject to the law if they hire seasonal employees.  The issues hinges on whether the employer is an applicable large employer.

The IRS issued IRS Health Care Tax Tip 2016-77 to address this issue.  The key takeaway is:

“If you have at least 50 full-time employees, including full-time equivalent employees, on average during the prior year, your organization is an ALE. Here’s the exception: If your workforce exceeds 50 full-time employees for 120 days or fewer during a calendar year, and the employees in excess of 50 during that period were seasonal workers, your organization is not considered an ALE. For this purpose, a seasonal worker is an employee who performs labor or services on a seasonal basis.”

This guidance may offer some relief to small employers that hire seasonal workers.  As always, it’s important to understand your obligations as an employer under the ever changing legal landscape.


You’re looking for a new job and you finally get the offer of your dreams.  The problem is that your new employer wants you to sign an employment agreement and maybe a separate non-disclosure agreement.

What do you do?  Our advice is to always seek legal counsel before committing to an employment agreement to ensure that your rights are protected and that you are not agreeing to too much.  Even if you think that the agreement is not actually enforceable, disagreements about this later could mean unanticipated and unwanted fees and costs (legal or otherwise) if and when you want to terminate your employment.  Having independent legal counsel review your employment agreement before you start could save you time and money in the long run.

For more information and reasons why seeking legal advice is to your benefit: