If you add all of the weekly hours of your employees and divide it by the hours in the workweek, you’ll determine how many full-time equivalent employees your business has. Full-time equivalent employees are those that are hired for a certain number of hours per week, usually at least 35 hours, and are considered to have a full-time job. Part-time staff, on the other hand, are typically hired to work fewer hours per week than is common for a full-time job, usually less than 35. A key difference between the two is the amount of time spent working.
However, if your company employs part-time employees as well, several of them together may equal 1.0 FTE. To calculate the FTE for all employees in your company, consider the full-time and part-time employees you employ. However, bear in mind that this only applies to positions that work 30 hours per week when assigned a 0.75 FTE position, i.e., the IRS minimum for a full-time definition. In contrast, non-exempt positions who typically work only 28 hours per week on a 0.75 FTE schedule do not qualify, even if the employer policy defines them as full-time. Eligibility for the Public Service Loan Forgiveness program — State-employed workers with 10 years or more of work experience have the opportunity to be relieved from their student debts under this program.
To calculate the full-time equivalent for part-time employees, add up their work hours and divide that number by 120. As you can see from the example above, you can easily calculate how many full-time equivalent employees you need to hire to successfully complete a project. All you need to do is enter how many hours of work are required to complete the whole project , and then how many hours a day your employees will work on that specific project. Eligibility for the Small Business Tax Credit Program — Applies to small businesses whose revenues have decreased or who have been shut down between the period of March 12, 2020, and December 31, 2020. If eligible, employers may receive a tax credit of up to 50% of the wages paid.
It could be more beneficial in terms of finance when it comes to paying new part-timer employees for a project rather than overpaying already existing full-time workers. EFT can help a company discover these kinds of budget-friendly solutions. Employee morale might improve if the number of FTEs hired increases. Staffing levels can have a significant impact on workers’ happiness and health because fewer hours spent working and fewer worries about getting everything done may result.
How is a Full-Time Equivalent (FTE) Calculated?
First, let’s look at what full-time equivalent or FTE actually means. The full time equivalent, often abbreviated as FTE is an indicator that reflects an employee’s productive capacity. An FTE of 1.0, for example, corresponds to the hours worked in a day for a full-time employee. Consequently, the FTE for a part-time employee working 20 hours a week would be 0.5. In the chart below, because both Carole and Lynn are full-time employees, they would each be counted as one FTE. However, determining the FTE for Jimmy and Marta requires calculation.
- The FTE employee doesn’t have to actually exist, and can be a combination of part-time employees.
- The PPP is part of the $2 trillion Coronavirus Aid, Relief, and Economic Security Act.
- These two part-time employees will be considered one full-time employee.
- Intuit Inc. does not warrant that the material contained herein will continue to be accurate nor that it is completely free of errors when published.
- A full-time equivalent is a unit of measure that is used to calculate work hours for staff members.
The full-time equivalent is one way of looking at your company’s workforce and will allow you to measure the workload and work capacity of an employee over a year. To calculate an FTE (full-time equivalent) wage, take the employee’s annual salary and divide it by the number of working hours per year. With FTE, you can hire full-timers and part-timers for the same project. This way, you can be able to have the average number of employees needed for a project to be done rather than overstaffing.
What is a typical official full-time schedule?
A full-time equivalent is a unit of measurement used to determine the amount of full-time hours worked by all employees in an organization. If a normal work week consists of 40 hours, an employee who works for 40 hours per week has an FTE of 1.0 while a part-time employee fte meaning working only 20 hours per week has an FTE of 0.5. According to the Affordable Care Act , employers with 50 or more FTEs are required to offer ACA-compliant benefits. The ACA defines a full-time employee as someone who works 30 hours per week or 130 hours per month.