Payroll Processing Consortium Proposes Payroll-Based Definition of FTE Under 4980H

The National Payroll Reporting Consortium, a group representing payroll processing providers, asked that employers be permitted to use payroll periods instead of calendar months in determining how many full-time workers they employ for purposes of complying with new health care law provisions, according to comments submitted to the Treasury Department and Internal Revenue Service June 9.

The 2010 health care overhaul requires large companies to provide health insurance to workers or face a tax penalty of up to $2,000 per worker.

IRS suggested in Notice 2011-36 that employers might be permitted to count full-time employees “for a prospective period” ...