The Full Time Equivalent (FTE) Disaster!

Warning: For businesses with large population of Part Time Employees.

Are you a business with a large part time population or a business thinking about moving full time to part time to avoid ObamaCare penalties or mandated coverage, think again.

Not a lot of people are talking about this and that is the Full Time Equivalent calculation within ObamaCare. What this entails is a way of making part time employees the equivalent of full time employees for the purpose of finding the your total number of full time employees and whether you fall into the under 50 category or over 50 employee category. For example:

if you have 30 full time employees (work 30 or more hours in ObamaCare) but have 50 part time employee that average 24 hours per week or 96 hours per month per PTE. You would think you are good to go! I don't have to offer health coverage...Yay!! Well here is the kick in the gut:

Another way to tally it is like this: This is a formula that simply states that a “full-time employee” works 2,080 hours a year.  So a business must take the total number of hours worked by all employees and divide that number by 2,080 to calculate the number of FTE employees. 

Let's see how that works:  62,400 total hours p/yr for the 30 FTE's and 57,600 hours total p/yr for the 50 PTE's for a total hours p/yr of 120,00. Now divide 120,000 by 2080 (what the government says is full time per yr hours) and you get 58 full time employees and fall into the over 50 employee threshold. Don't get me started about OVERTIME because guess what...that counts against you as well.

No matter how you look at it the Government found a way to get the most for them out of those businesses that have a large population of PTE's or planning to move a large number of FTE's to PTE's.  This is a disaster waiting to implode. It is unsustainable. It is just another entitlement. It is just another way to make you dependent on Government

Hang in there with us and let us know what we can do to help.

www.gulfbreezeinsurance.com