Your Source for Health Reform

Topic: FTE Employees



The ACA categorizes employers as large or small based on the number of full-time equivalent employees they have. In general, this means finding how many full-time workers the part-timers’ hours would have added up to. The IRS has developed an exact formula to make this calculation.


Enrollment Issues for Small Businesses

This March 2014 information sheet and frequently asked questions from the Robert Woods Johnson Foundation addresses common concerns for small employers as they explore health insurance options for their workers.

Can Your Small Business Use the SHOP?

This October 2014 flier from the Centers for Medicare & Medicaid Services summarizes the basic qualifications for a small business to be eligible to participate in the Small Business Health Options Program. A guide for calculating the number of full-time equivalent employees, with an example, is also provided.

Worksheet to Determine Your FTE Employees

This worksheet, produced by a benefits and payroll vendor for small businesses, helps employers calculate the number of full-time equivalent employees they have, which will determine some ways the ACA will apply to them. A three-step process, explained in plain language, shows how to add together full-time, part-time and seasonal employees to determine how many FTEs work for a company.

Small Business Tax Credit Q&A: FTEs and Average Annual Wages

The IRS recently issued this set of questions and answers to clarify definitions of types of employees and average annual wages. It also answers questions about tax credits, employee hours of service, and who is or is not an employee for purposes of tax credit eligibility.

Deep Dive Into Employer Rules and Penalties

This March 2013 webinar by GCG Financial covers the rules and penalties for larger employers under the Affordable Care Act.

“Pay or Play” Penalty – Identifying Full-Time Employees

This February 2013 legislative brief from GCG Financial explains how proposed ACA regulations provide guidance on an optional method for identifying full-time employees for purposes of determining and calculating an employer’s potential liability for a shared responsibility payment. It also notes important transition relief is available under the proposed regulations.

GCG Health Care Reform Update

This February 2013 presentation by GCG Financial covers market developments, wellness incentives, and the employer mandate. It is part of the GCG Financial Healthcare Reform Webinar Series

ACA Shared Responsibility Obligations for Employers

Do you have at least 50 employees? Numbers can be deceiving. This February 2013 presentation from financial consultants CBIZ explains the key provisions of the ACA affecting employers.

Premiums and Employee Contributions for Employer-Sponsored Health Insurance

The average private sector premiums in 2011 were $5,222 for single coverage, $10,329 for employee-plus-one, and $15,022 for family coverage. Employees contribued an average of $1,090 for single coverage, $2,736 for plus-one, and $3,962 for family plans. The numbers for public sector plans are also given. This January 2013 statistical brief summarizes the results of the Agency for Health Care Research and Quality’s Medical Expenditure Panel Survey.