ACA Full-Time Equivalent (FTE) Calculator

An employee who averages at least 30 hours of service a week in a month, or at least 130 hours of service in the month. Everyone else goes into the full-time-equivalent count.

Add up the hours of service for the month of everyone who was not full-time, counting no more than 120 hours for any one person, and divide by 120. Fractions count. The IRS lets you round each month to the nearest hundredth.

The yearly figure is the 12 monthly totals added up and divided by 12, and if the result is not a whole number it is rounded down. 49.9 becomes 49, which is under the threshold. 50.0 stays 50, which meets it.

If you were over 50 for no more than 120 days (four calendar months may be used instead) and the people above 50 in that stretch were seasonal workers, you are not an applicable large employer for the year. The calculator applies this when you enter month-by-month numbers and tick the box.

Yes. Companies under common ownership or otherwise related under the section 414 rules of the Internal Revenue Code are combined to decide whether the group is an applicable large employer. Enter the whole group's numbers if that applies to you.