What does the term “full-time equivalent” employee mean?

The number of full-time equivalent employees is determined by the total number of hours worked during the tax year divided by 2,080. This is rounded to the next lowest whole number. If an employee works more than 2,080 hours during the taxable year, the excess is not counted. This figure does not include the hours worked by seasonal employees unless the seasonal employee worked for a company more than 120 days during the tax year.

To learn more about the small business tax credit or health care reform, go to www.healthcare.gov or www.uhc.com/reform.

This communication is not intended as legal or tax advice. Please contact a competent legal or tax professional for personal advice on eligibility, tax treatment and restrictions. Federal and state laws and regulations are subject to change.