With the upcoming Health Care Reform Act, you only have to offer health coverage to full-time employee’s in 2014 if you employ 50 or more within your organization. However, both FTE and Part-Time Employees (PTE) are a calculation to the “50”. Here’s how to accurately evaluate your FTE count:
Step 1 – Calculate PTE Hours
PTE will count towards the new Health Care Reform Act. You must account their aggregate hours towards the “50” employee count. If you have PTE, add up the total number of their hours worked in a month and divide by 120 (30 hrs x 4 weeks).
Step 2 – Add PTE Hours to FTE Count
Add the number from Step 1 to the number of FTE you also employ to see if your organization totals to 50.
FTE Definition: FTE for any month is – the number of employees that are employed for an average of at least 30 hours of service per week.
To be in compliance, you must establish a measurement period to determine FTE count followed by a stability period for health care coverage.