How to Track Full-Time Equivalent Employees in 2024

How to Accurately Track Your Full-Time and Full-Time Equivalent Employees to Ensure ACA Compliance.

Tracking your full-time and full-time equivalent (FTE) employees is essential for businesses to comply with the Affordable Care Act (ACA). This process might sound complicated, but with a few simple steps, you can get it right. Let's break it down in a way that's easy to understand.

What is a Full-Time Employee?

A full-time employee is someone who works at least 30 hours per week or 130 hours per month. This is the baseline for determining full-time status according to the ACA (IRS.gov) (IRS.gov).

What is a Full-Time Equivalent (FTE) Employee?

FTE employees are calculated by combining the hours worked by part-time employees to see how many full-time employees they would equal. For example, if two part-time employees each work 20 hours per week, together they make up one full-time equivalent (FTE) employee because their total hours add up to 40 (IRS.gov).

‍