(2) Applicable large employer (A) In general The term “applicable large employer” means, with respect to a calendar year, an employer who employed an average of at least 50 full-time employees on business days during the preceding calendar year. (B) Exemption for certain employers (i) In general An employer shall not be considered to employ more than 50 full-time employees if— (I) the employer’s workforce exceeds 50 full-time employees for 120 days or fewer during the calendar year, and (II) the employees in excess of 50 employed during such 120-day period were seasonal workers. (ii) Definition of seasonal workers The term “seasonal worker” means a worker who performs labor or services on a seasonal basis as defined by the Secretary of Labor, including workers covered by section 500.20 (s)(1) of title 29, Code of Federal Regulations and retail workers employed exclusively during holiday seasons. (C) Rules for determining employer size For purposes of this paragraph— (i) Application of aggregation rule for employers All persons treated as a single employer under subsection (b), (c), (m), or (o) of section 414 of the Internal Revenue Code of 1986 shall be treated as 1 employer. (ii) Employers not in existence in preceding year In the case of an employer which was not in existence throughout the preceding calendar year, the determination of whether such employer is an applicable large employer shall be based on the average number of employees that it is reasonably expected such employer will employ on business days in the current calendar year. (iii) Predecessors Any reference in this subsection to an employer shall include a reference to any predecessor of such employer. (D) Application of employer size to assessable penalties (i) In general The number of individuals employed by an applicable large employer as full-time employees during any month shall be reduced by 30 solely for purposes of calculating— (I) the assessable payment under subsection (a), or (II) the overall limitation under subsection (b)(2). (ii) Aggregation In the case of persons treated as 1 employer under subparagraph (C)(i), only 1 reduction under subclause (I) or (II) shall be allowed with respect to such persons and such reduction shall be allocated among such persons ratably on the basis of the number of full-time employees employed by each such person. (E) Full-time equivalents treated as full-time employees Solely for purposes of determining whether an employer is an applicable large employer under this paragraph, an employer shall, in addition to the number of full-time employees for any month otherwise determined, include for such month a number of full-time employees determined by dividing the aggregate number of hours of service of employees who are not full-time employees for the month by 120. (F) Exemption for health coverage under TRICARE or the Department of Veterans Affairs Solely for purposes of determining whether an employer is an applicable large employer under this paragraph for any month, an individual shall not be taken into account as an employee for such month if such individual has medical coverage for such month under— (i) chapter 55 of title 10, United States Code , including coverage under the TRICARE program, or (ii) under a health care program under chapter 17 or 18 of title 38 , United States Code , as determined by the Secretary of Veterans Affairs, in coordination with the Secretary of Health and Human Services and the Secretary.