Full-Time Equivalent Employee Calculator

Find out if you're a Small or Large Business under ACA

ACA on Businesses 

A Small Business is one with less than 50 full-time equivalent employees (FTEs). A Large Business is one with 51 or more FTEs.


It's important to know if your business is Small or Large under the Health Reform law because the pricing, benefits, underwriting, and requirements are different for each.


Small Business (2-50)

A Small Business is not required to offer health insurance to its employees, but might qualify for a Small Business Tax Credit if it does.


Insurance companies cannot turn away a Small Business or charge any employee extra premium for pre-exisiting conditions, health history, claims, gender, or profession.

Large Business (51+) 

A Large Business is required to offer health insurance to its employees or pay a penalty. The employee's cost of employee-only coverage must pass an Affordability Test for each employee or the business is also subject to fines. 


Penalties have been delayed until 2015 to give Large Businesses more time to prepare. 

Who is considered a full-time equivalent employee?

What about part-time or seasonal employees?

Do they count toward my total number of FTEs?

Yes, part-time and seasonal employees can partially total number of FTEs, even though you do not have to offer them benefits. 


Employees must work at least 120 days a year to be counted at all.


For every 30 hours worked, it counts as one FTE. For example, if you have 10 part-time employees working 12 hours each per week, that is a total of 120 hours per week, divided by the FTE equivilent of 30 hours, and now you have 4 FTEs to add to your total number.


(Try the calculator below. It does the math for you!)

The Affordable Care Act defines an employee working 30 or more hours per week as a full-time eligible employee (FTE). The number of FTEs at your business determines if you are a Small or Large Business under ACA.    

Small Business = 2-50 FTEs

Large Business = 51 or more FTEs

Try the Calculator 

See if you business is considered Small or Large under the Affordable Care Act. Our experts will also make this determination during our analysis of your Employee Benefit Program when you partner with us

The materials on this website have been developed for educational purposes only and should not replace consulting with an attorney and/or benefit consultant to understand your full legal obligations under the law. In many instances, the rules have yet to be written, and experts are continuing to debate how various provisions of the law will be implemented and enforced.  Basic elements are subject to change and exception.