To determine your total FTE, add the total part-time hours worked, plus the total full-time hours worked. From there, if your full-time hours are 40 per week, divide the number by 2,080. If your total full-time hours are 30 per week, divide the number by 1,560. This will give you your total FTE for all full- and part-time employees for the year. You can use the FTE total each week, month, or year to determine company growth.

  • FTE calculations make it easier for you to assign different personnel to different projects or specific tasks based on their overall performance and contribution to your company.
  • In this case, the calculation may show that the first professional is overqualified for the position, whilst the other needs more training and development.
  • The FTE calculation is used in project management — and resource management, specifically — when staffing decisions need to be made.
  • Knowing this will help you stay compliant with state and federal laws.

To understand what 100% FTE means, it is important to first understand the concept of ‘full-time’. Generally, a full-time employee works a minimum of 35 hours or more per week. This is the most common definition of full-time but can vary depending on the organisation. For example, some organisations may define full-time as working 32 hours or more a week. Once you have determined the number of hours an employee is expected to work, the next step is to determine the number of hours an employee works. This number will be different from the expected number depending on the hours worked and the amount of overtime an employee may have.

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In the construction industry, you’ll need a larger headcount when a bigger project comes along. It’s easier to plan for this when you can visualize your project needs and team capacity. Use your FTE calculation to find out whether your company qualifies.

  • FTEs can be compared to revenue output and other productivity metrics to assess workload balance across the organization.
  • Stay on top of FTE trends and leverage HRIS tools to master this essential workforce metric.
  • If you’re trying to determine who is full time and part time for ACA purposes, use 30 hours per week as the criteria for a full-time employee.
  • Calculating FTE even gives small businesses insight into whether they’re paying too little or too much in project costs.
  • Once you have determined the number of hours an employee is expected to work and the number of hours an employee works, you can calculate the FTE hours.

For example, measuring FTE from month to month, or even week to week, helps to track overall workloads and expected employee output, even as part-time schedules chop and change. Identifying which employees are FTEs is essential for a number of reasons ranging from workforce planning to adhere to employment laws under the Affordable Care Act. This is how a company, on average, calculates the average yearly number of hours that a full-time employee works. An FTE of 100% is equal to the amount of work one full-time employee performs within a given time period (a day, week, month, or year).

Are owners included in FTE for PPP?

She is passionate about economic development and is on the board of two non-profit organizations seeking to revitalize her former railroad town. Prior to joining the team at Forbes Advisor, Cassie was a Content Operations Manager and Copywriting Manager at Fit Small Business. Let’s take a look at a few of the more common programs you might be expected to provide an FTE figure for. You can seamlessly collaborate with remote and in-person colleagues in a professional and stylish office space. In Australia, the equivalent to FTE for students is EFTSL (Equivalent Full-Time Student Load). As you’ll understand by the end of this article, there are a number of situations when knowing what FTE is and how to calculate it may come in handy.

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One option is to bring on a part-time employee on a full-time basis temporarily. A simpler way of calculating FTE for PPP is to assign an FTE of 1.0 to employees working 40 or more hours per week, and an FTE of 0.5 to those who work less. The Paycheck Protection Program (PPP) is designed to prevent job losses during the pandemic by giving loans to small businesses to cover payroll expenses and other costs. A portion of this loan can be forgiven based on the number of FTE workers an employer has on its payroll.

You can then determine the equivalent number of full-time workers you employ. An FTE or full-time equivalent calculation helps organizations better understand operational logistics as it relates to their employees and their employees’ contributions. In the case of a worker, it is a unit of work, or it is the work that a student completes during the school day. The term “full-time equivalent” (FTE) refers to the number of hours an employee puts in during a work week. Part-time employee hours by FTE can be converted to full-time employee hours by using the FTE metric. HR departments use FTE salaries to determine part-time workers’ salary compensation.

Tracking FTEs over time also allows HR to identify growing or decreasing expenditure on salary and benefits. Finance teams will also be interested – ånd revenue per FTE can also be calculated from this. In other words, FTE allows companies to standardize headcount and measure workload capacity by converting part-time staff to a full-time basis. The Affordable Care Act (ACA) requires that every employer with 50 or more FTEs must provide ACA-compliant benefits.

Helps companies comply with ACA obligations

Like we mentioned above, employers use FTE calculations for a number of different reasons to better understand the employment needs and labor output of their organization. Let’s dive into the main benefits of using an FTE calculation below. Below, we’ll look more closely at FTE, the equation for an FTE calculation, and why it’s an integral metric for understanding your company’s organizational needs.

It is a measure of the total number of hours worked by an employee or group of employees on a full-time basis, relative to the hours worked by another employee or group of employees on a full-time basis. FTE is a term that is commonly used in the fields of finance and human resources, and businesses need to understand what FTE means when it comes to measuring the size of their workforce. To calculate FTE correctly, you’ll need to quantify your total weekly available work hours; it’s an important component of the calculation. Available hours per week is the number of hours your business considers standard work time multiplied by the number of employees you require to accomplish those related needs.

This is particularly true for large organizations that employ a variety of full-time, part-time, and flexible staff. Let’s say you have 100 employees, but 18 of those employees are part-time and only work 10 hours a week. Altogether, those 18 employees only account for the hours of four and half full-time employees. Now, you could choose to assign one full-time employee and one part-time employee to work on the project for 1 week. You could also allocate work to 4 part-time employees to do the same work in one week. Or, if the project’s deadline is within one month, you could also go with a single employee working 15 hours a week (0.375 FTEs).

FTE Full Form: ACA-Compliant FTE

You can find out how many FTEs your company has and make sure you receive the benefits required by the ACA. A full-time employee is one who works 30 or more hours a week, according to the ACA. Additionally, 1 FTE will be awarded to an employee who works 30 or more hours. Employees who add 50 FTE or more to their schedule are eligible to receive eligible medical coverage from their employers. You can also use an FTE calculation to determine the appropriate pay for part-time workers. To identify the FTE for a specific part-time position, just divide the number of hours worked by the employee by the number of hours considered for a full-time worker.

In reference to an individual, 0.5 usually refers to the fact that the worker renders less than a full day of work or the student attends less than a full day of classes. The IFTE of 4 employees equals 160 work hours (assuming a regular work week has 40 hours). FTE allows companies to assess workforce capacity and the real performance of their team, the individuals within that team, entire departments, or even the company as a whole.

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