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→How the ACA really affects small businesses
The Affordable Care Act uses the language “full-time equivalent” (abbreviated FTE) when determining the number of full-time employees.
Calculation for finding the number of full-time equivalent employees: # of FTE's = ('''Total Number of Full-time Employees) ''' +[ ('''Combined Number of Part-time Employees Hours''')/'''30''']
A full-time employee is any employee who worked on average more than 30 hours a week for more than 120 days in a year [https://www.healthcare.gov/shop-calculators-fte/#].
Another criterion for determining mandate-exemption or tax-credit status in the ACA is the average annual wage of employees: ('''Average Annual Wage = Total Wages Paid by an Employer)'''/('''Number of FTEs)''', rounding down to the nearest $1,000 [http://obamacarefacts.com/obamacare-small-business/].
The employer mandate of the ACA is passed onto larger companies - firms with larger than 50 FTE (full time equivalent employees) - but many of these larger corporations also already offer health insurance coverage for their employees. However, companies between 50 and 100 FTE, which are still required by the ACA to offer health insurance coverage to their employees, have been affected in a more complicated way.
