How does the IRS define small organizations in terms of employee count?

The IRS defines small organizations based on specific criteria that often include the number of employees. According to the IRS definition, an organization with less than 100 employees is considered a small organization. This classification is important because it can determine eligibility for various tax benefits, regulatory requirements, and compliance obligations.

In this context, classifying an organization as small helps in understanding its potential for growth, hiring practices, and the kind of support it might need. Organizations with fewer employees typically have different needs and challenges compared to larger ones, making this definition significant for policy-making and resource allocation.

Understanding this classification is key for students studying management and leadership as it influences how businesses operate, make strategic decisions, and engage with governmental regulations.