What is a full-time equivalent employee for purposes of the health coverage tax credit?
• A full-time equivalent is determined by dividing the total hours for which the employer pays wages to employees during the year (but not more than 2,080 hours for any individual employee) by 2,080. See the IRS Web site’s FAQs with regard to additional information on determining full-time equivalents for the small business tax credit.
Related Questions
- If an employee does not participate in the employer-provided health plan, should the employee be counted in the FTE calculation for purposes of the tax credit?
- If my employee’s dependent coverage ended because he/she was not a full-time student; can my employee’s dependent enroll in Sharp Health Plan?
- What Type of Health Insurance Coverage Qualifies the Employee to Open a Health Savings Account?
