Who counts as a part-time employee?
In general, employees who perform services for your business are counted for the Small Business Health Care Tax Credit.
If you pay someone to work for you for less than than full-time (2080 hours), then that person is a part-time employee.
There are a some types of people who do NOT count as employees for the credit.
If you pay someone to work for you for less than than full-time (2080 hours), then that person is a part-time employee.
There are a some types of people who do NOT count as employees for the credit.
- Sole proprietors, partners in a partnership, shareholders owning more than two percent of an S corporation, and any owners of more than five percent of other businesses do NOT count as employees for purposes of the credit.
- Family members or dependents of these owners and partners are also NOT counted as employees.
- Seasonal workers also do not count as part-time employees unless they work more than 120 days during the tax year.
