Calculating the Average Total Number of Employees (ATNE)

April 16, 2019
Calculating the Average Total Number of Employees (ATNE)

The size of an employer group determines benefit design, as well as Center for Medicare & Medicaid Services reporting requirements. Employers are required by state and federal regulations to report their ATNE; its accuracy impacts group health plan benefits.

Definition of ATNE

The Patient Protection and Affordable Care Act (PPACA) defines the number of employees at a company as “the average number of employees employed during the preceding calendar year.” An employee is typically any person for which the company issues a W-2, regardless of full-time, part-time or seasonal status or whether or not they have medical coverage.

 

3 Steps to Calculate ATNE

  1. Calculation of ATNE is based on the year prior to the renewal or effective date. Add all monthly employee totals together and divide by the number of months that the company was in business last year (usually 12 months).
  2. Consider all months of the previous calendar year regardless of whether the company had coverage or was in business but did not offer coverage.
  3. Use the number of employees at the end of the month as the “monthly value” to calculate the year average. If the company is a newly formed business, calculate the prior year average by using only those months that the company was in business. Use whole numbers only.

Example:

Month

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Total

Employees

10

15

20

11

12

15

16

13

11

10

9

11

153

 

 

Total (Sum of) Employees = 153

Divide total number of employees by total number of months­—153/12 = 13 average employees per month

Download our ATNE Worksheet. Employers should seek the advice of a lawyer or accountant to confirm the accuracy of their employee census.