A FTE is calculated by adding all part-time employees' hours (employees working less than 30 hours a week) and dividing by 30 and adding all of your full-time employees to your number. Here is an example:
Employer A has the following employee make-up:
- 50 employees working at least 30 hours per week (50 FTEs)
- 10 employees working 20 hours per week (10 x 20/30 = 6.67 FTEs)
- 40 employees working 15 hours per week (40 x 15/30 = 20 FTEs)
This employer would be deemed to have 76 (50 + 6.67 + 20) FTEs
For 2015, there would not be any large employer penalty issues. However beginning in 2016, Employer A could be subject to a non-deductible penalty up to $40,000 annually.
There are many considerations in determining whether or not employers should offer coverage, whether hourly employees are full-time or part-time and the kind of coverage(s) to offer.
In order to assist employers, Bourgeois Bennett, LLC is hosting a complimentary seminar Tuesday, Nov. 18, 2014 from 9-11 a.m. To RSVP, call Becky Kearns at (504) 831-4949.
If you have questions, call Stephen Blitz at Bourgeois Bennett's New Orleans office.