What Does Fte Mean?

[BOB W]

What does FTE mean?

Small Business Health Care Tax Credit

Effective with tax years beginning in 2010, small employers that
provide health care coverage to their employees and that meet
certain requirements generally are eligible for a federal income
tax credit for health insurance premiums they pay for certain
employees.

Qualified employer. In order to be a qualified employer:

1) The employer must have fewer than 25 full-time equivalent
employees (FTEs) for the tax year,

2) The average annual wages of its employees for the year must
be less than $50,000 per FTE, and

3) The employer must pay the premiums under a qualifying
arrangement.

Calculation of the credit. Only premiums paid by the employer
under a qualifying arrangement are counted in calculating the
credit. Under a qualifying arrangement, the employer pays premiums for each employee enrolled in health care coverage offered by the employer in an amount equal to a uniform percentage (not less than 50%) of the premium cost of the coverage.

If an employer pays only a portion of the premiums for the coverage provided to employees under the arrangement (with employees paying the rest), the amount of premiums counted in calculating the credit is only the portion paid by the employer

[Jesse]

full-time equivalent employees = More than 1 part time can equate to a full time.

So you can have 40 part time employees and still qualify if they are = to 20 full time employees. Something to that effect.

[Jesse]

TTB Understanding Health Care Reform is a good in depth explanation of the Health Care Reform.

I'd go into more detail but I need to run watch my Pack attack da Bears!!!!

Wouldn't a Packer/Jet playoff be so fitting w/out Favre!?!

[BOB W]

full-time equivalent employees = More than 1 part time can equate to a full time.

So you can have 40 part time employees and still qualify if they are = to 20 full time employees. Something to that effect.

Thanks, I never heard that term before. O well............

[Lion]

Da Bears!

But, my husband with the TV on tells me my Bears are not doing well...

[veritas]

Go Pack

......................

[AJsTax]

In the instructions

for the form for the health care credit there are several worksheets you have to do in order to figure the credit. One of them is figuring the FTE. It takes a lot of time to figure this for an employer.

[S T]

I have one

and yes it appears to be multiple calculations to arrive at

and then the preliminary is that he won't receive the full credit, as the employees are not full 40 hours, they are around 30 hours - just barely enough to qualify for the group insurance

and this client will "squeak" about my fee

however, the client is on the edge of staying in business, so I guess I have to do what I have to do to try to obtain all tax credits affordable to him.

Sandy