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Full Time Equivalent Employee Calculation for ACA Reporting
Don’t underestimate your true full-time equivalent count by ignoring non-full-time staff. In simple terms, the number of full-time equivalent employees (FTEs) equals the total number of full-time employees (working 30 or more hours per week) plus the number of FTEs.
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Monthly full-time equivalents (FTEs) are calculated by combining the number of hours of service of all non-full-time employees for the month (but not including more than 120 hours of service per employee), and then dividing the total by 120.
• Using this guideline, you may discover that your business is unexpectedly required to comply with ACA reporting requirements.