Which option correctly states the threshold for large employers under the ACA's employer mandate?

Which option correctly states the threshold for large employers under the ACA's employer mandate?

• A. 50 full-time employees
• B. 100 full-time employees
• C. 200 full-time employees
• D. 25 full-time employees

Answer: (B)

The threshold for a large employer under the ACA employer mandate is defined as at least 50 full-time employees or their full-time equivalent (FTE). In practice, you count employees who work 30 hours per week as full-time and convert part-time hours into FTEs by dividing their total monthly hours by 120, then add those to the full-time count. If the total reaches 50 or more, the employer is considered large and must offer qualifying coverage to their full-time employees or face penalties. The other numbers don’t fit this standard because the law uses 50 as the cut-off, not 100, 200, or 25.

The threshold for a large employer under the ACA employer mandate is defined as at least 50 full-time employees or their full-time equivalent (FTE). In practice, you count employees who work 30 hours per week as full-time and convert part-time hours into FTEs by dividing their total monthly hours by 120, then add those to the full-time count. If the total reaches 50 or more, the employer is considered large and must offer qualifying coverage to their full-time employees or face penalties. The other numbers don’t fit this standard because the law uses 50 as the cut-off, not 100, 200, or 25.