How many Full-time Employees do you have under the Affordable Care Act?
The Affordable Care Act (ACA) defines a full-time employee as one that works at least 30 hours per week or 130 hours per month for any calendar month. The Full-Time Equivalent Value is determined by dividing the total monthly hours of all other employees by 120. Why are these terms important?
Under the ACA, beginning in 2015, employers with more than 100 full-time equivalent employees (FTEs) must provide affordable health coverage that provides a minimum level of coverage to at least 70% of their FTEs and their dependents or be subject to an Employer Shared Responsibility penalty.