FTE – Holding Your Payroll at 49 Employees Might Not Work
The 2010 Patient Protection and Affordable Care Act requires “large applicable employers” — defined as those with 50 or more full-time-equivalent (FTE) employees — to offer their full-time employees an affordable “minimum essential coverage” health benefits package starting in 2014, or face penalties for not doing so. Part-time employees’ hours are considered in determining whether a business is above or below the 50 FTE threshold. Use this calculator to see if you are considered a large applicable employer under PPACA or if you have fewer than 50 FTEs and therefore will not be subject to PPACA’s employer mandate.
If you are considered a “large” employer then you must offer health insurance or pay fines for each employee that goes to the health exchanges. Plan accordingly.