First Compliance Step, Are You Big or Small?

Whenever you’re speaking with an employer about health insurance and the Affordable Care Act (ACA) , the first thing you need to establish is whether the employer is a large or small employer according to the ACA. Depending on whether an employer has 50 or more full-time equivalent employees (FTEs), the response you make to any questions may be very different.

Employers that have 50 or more FTEs are considered “applicable large employers” for ACA purposes. That’s the threshold for the Act’s employer responsibility requirements.

While you’re at it, if an employer mentions the term FTEs always ascertain their meaning in using the term. Some employers use this acronym to mean “full-time employees.” Not knowing how the term is being used, could affect the accuracy of your response.

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After all, an employer with 35 full-time employees can easily have a total of 50 or more full-time and  FTEs (full-time equivalents) if they have any part-time employees.