Q: What is a “full-time equivalent” (FTE) employee?
A: An FTE is the number of hours every person in the business works added together. This sum is divided by 2080. The resulting number reveals the number of FTE’s and therefore whether the employer is considered a “large” employer or not.
Q: If I am a large employer, can I eliminate the need for employee healthcare by reducing everyone to 30 hours per week?
A: No, if an employer has over 50 FTE employees by calculation, the employer must generally provide healthcare for their employees at an affordable cost to the employee
Q: Where is the best place to store estate plan documents?
A: The best place to store estate plan documents is in a secure location that others know of and that is easily accessible. Storing the documents in a safe deposit box that a friend knows of can be a good place as long as that friend knows where to get the keys. Hiding documents in a book or in a safe that no one has the combination for renders the documents useless to both you and those that are trying to help you.
By: Basi & Basi at the Center for Financial, Legal and Tax Planning for Transworld M&A Advisors