Question

Ross and Karl are partners in Artful Antiques. If each works 2,080 hours each year in the company and the company employs five employees who work 2,080 hours annually and six employees who work 1,040 hours each, how many full-time equivalent employees (FTEs) does the business have for purposes of the Affordable Care Act?

Answer 1

Answer :

Full Time duration ( each year ) = 2080 Hours

Number of employess who work 2080 hours = 5 employees

Number of work hours for full time employees ( each year ) = 5 employees * 2080 hours = 10400 hours

Number of employees who work 1040 hours ( half time ) = 6 employees

Number of work hours for half time emlployees ( each year ) = 6 employees * 1040 hours = 6240 hours

Total working hours each year = 10400 + 6240 = 16640 hours

Full time equivalent employees = Total working hours each year / full time duration

Full time equivalent employees = 16640 / 2080

Full time equivalent employees = 8

There are 8 full time equivalent employees for purposes of Affordable care act.