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Subject: So the 29 hour scam is not going to work. rss

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Mac Mcleod
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From the small business administration.

If you work three employees 29 hours each... they essentially count as 2 full time employees.

So the 29 hour scam is not going to work.

Quote:

Q. How is the number of FTEs determined?

A. Add up the total hours of service for which the employer pays wages to employees during the year (but not more than 2,080 hours for any employee), and divide that amount by 2,080. If the result is not a whole number, round to the next lowest whole number. (If the result is less than one, round up to one FTE.) In some circumstances, an employer with 25 or more employees may qualify for the credit if some of its employees work less than full-time. For example, an employer with 48 employees that are each half-time has 24 FTEs and, therefore may qualify for the credit. See the “Who is an employee for purposes of determining FTEs and average annual wages?” and the “What are the permissible ways to count hours of service?” questions on this page for information on how to compute an employee’s hours of service and determining which employees are counted.

Example: For the 2014 taxable year, an employer pays five employees wages for 2,080 hours each, three employees wages for 1,040 hours each, and one employee wages for 2,300 hours. The employer uses a method that counts hours actually worked. The employer’s FTEs would be calculated as follows:

10,400 hours for the five employees paid for 2,080 hours (5 x 2,080)
3,120 hours for the three employees paid for 1,040 hours (3 x 1,040)
2,080 hours for the one employee paid for 2,300 hours (lesser of 2,300 and 2,080)

The total hours counted is 15,600 hours. The employer has seven FTEs (15,600 divided by 2,080 = 7.5, rounded to the next lowest whole number).
 
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Xander Fulton
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Why...why do you hate the job creators so?

Don't you get it - without them, nothing would get done! Bridges would collapse, the lights would go out, dishes piling up and dust settling on every surface - fruit would rot on the vine and the fields become overgrown! Without these precious job creators, all of humanity would do naught but sit in their armchairs, drooling, and staring off into the distance...
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nothing but static
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maxo-texas wrote:
From the small business administration.

If you work three employees 29 hours each... they essentially count as 2 full time employees.

So the 29 hour scam is not going to work.




Given the amount of part time and irregular work in any economy it would have been a stupid mistake on the part of legislators if it had.

Though it starts to influence when an employer might employ someone off
the books entirely.
 
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Boaty McBoatface
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bjlillo wrote:
maxo-texas wrote:
From the small business administration.

If you work three employees 29 hours each... they essentially count as 2 full time employees.

So the 29 hour scam is not going to work.

Quote:

Q. How is the number of FTEs determined?

A. Add up the total hours of service for which the employer pays wages to employees during the year (but not more than 2,080 hours for any employee), and divide that amount by 2,080. If the result is not a whole number, round to the next lowest whole number. (If the result is less than one, round up to one FTE.) In some circumstances, an employer with 25 or more employees may qualify for the credit if some of its employees work less than full-time. For example, an employer with 48 employees that are each half-time has 24 FTEs and, therefore may qualify for the credit. See the “Who is an employee for purposes of determining FTEs and average annual wages?” and the “What are the permissible ways to count hours of service?” questions on this page for information on how to compute an employee’s hours of service and determining which employees are counted.

Example: For the 2014 taxable year, an employer pays five employees wages for 2,080 hours each, three employees wages for 1,040 hours each, and one employee wages for 2,300 hours. The employer uses a method that counts hours actually worked. The employer’s FTEs would be calculated as follows:

10,400 hours for the five employees paid for 2,080 hours (5 x 2,080)
3,120 hours for the three employees paid for 1,040 hours (3 x 1,040)
2,080 hours for the one employee paid for 2,300 hours (lesser of 2,300 and 2,080)

The total hours counted is 15,600 hours. The employer has seven FTEs (15,600 divided by 2,080 = 7.5, rounded to the next lowest whole number).


What does this have to do with anything?
If you are saying what I think you are saying I agree, what point is being made?
 
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Rich Shipley
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maxo-texas wrote:
From the small business administration.

If you work three employees 29 hours each... they essentially count as 2 full time employees.

So the 29 hour scam is not going to work.


That will determine whether a business has to offer coverage to its full-time employees. It still won't have to cover the part-time employees.
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Dave G
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Did anyone not understand what a full-time equivalent was, Mac?
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Mac Mcleod
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djgutierrez77 wrote:
Did anyone not understand what a full-time equivalent was, Mac?


I guess not.

I'll put it another way (and let's keep in mind I'm not an expert so there may still be/probably are some benefits to working people 29 hours).

If you have 104,000 hours of work to be done, you can't avoid the law by dividing it among 100 part time workers at 20 hours each.

However, it does look like you can avoid the law by dividing the work among 49 workers putting in over 2080 hours a year each.

So it seems to me that the companies trying to reduce hours to 29 and hiring multiple part timers are not getting the benefit they are counting on and they would do better to give people more hours.

Of course, for hourly workers 5 hours a week of overtime would cost 7.5 hours of money. So even at $10 an hour that would be an extra $13,000 per employee per year... hmmm
 
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Paul W
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maxo-texas wrote:
djgutierrez77 wrote:
Did anyone not understand what a full-time equivalent was, Mac?


I guess not.

I'll put it another way (and let's keep in mind I'm not an expert so there may still be/probably are some benefits to working people 29 hours).

If you have 104,000 hours of work to be done, you can't avoid the law by dividing it among 100 part time workers at 20 hours each.

However, it does look like you can avoid the law by dividing the work among 49 workers putting in over 2080 hours a year each.

So it seems to me that the companies trying to reduce hours to 29 and hiring multiple part timers are not getting the benefit they are counting on and they would do better to give people more hours.

Of course, for hourly workers 5 hours a week of overtime would cost 7.5 hours of money. So even at $10 an hour that would be an extra $13,000 per employee per year... hmmm


Once you're at 50 FTE, employers have to provide health care to employees working at least 30 hours a week, but not those working less. The whole point of the 29 hours limit isn't to avoid the 50 FTE threshold, but to avoid the 30 hour/week threshold for having to provide an employee health care (specifically, if you have at least 50 FTE, you must provide health insurance to at least 95% of your full time employees, *not* 95% of your FTE). Your analysis is just wrong.
 
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Mac Mcleod
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fizzmore wrote:
maxo-texas wrote:
djgutierrez77 wrote:
Did anyone not understand what a full-time equivalent was, Mac?


I guess not.

I'll put it another way (and let's keep in mind I'm not an expert so there may still be/probably are some benefits to working people 29 hours).

If you have 104,000 hours of work to be done, you can't avoid the law by dividing it among 100 part time workers at 20 hours each.

However, it does look like you can avoid the law by dividing the work among 49 workers putting in over 2080 hours a year each.

So it seems to me that the companies trying to reduce hours to 29 and hiring multiple part timers are not getting the benefit they are counting on and they would do better to give people more hours.

Of course, for hourly workers 5 hours a week of overtime would cost 7.5 hours of money. So even at $10 an hour that would be an extra $13,000 per employee per year... hmmm


Once you're at 50 FTE, employers have to provide health care to employees working at least 30 hours a week, but not those working less. The whole point of the 29 hours limit isn't to avoid the 50 FTE threshold, but to avoid the 30 hour/week threshold for having to provide an employee health care (specifically, if you have at least 50 FTE, you must provide health insurance to at least 95% of your full time employees, *not* 95% of your FTE). Your analysis is just wrong.


Never mind. whistle

Guess I got the wrong impression.

OTH, I have a better understanding now.
 
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