What Is Full-Time Equivalent FTE?

Just indicate how many employees work at your company, how many hours they work a week, and for how many weeks. Our model will then instantly calculate the Full Time Equivalent for you. With 14 employees, 7 of which are full-time and 7 part-time, the staffing capacity is 9.04 full-time employees per year. Do you want to calculate how much hiring an employee abroad will actually cost you?

fte meaning is also calculated to see whether or not you qualify for any tax credits. For example, an employee who works a full-time, 40-hour week would equal 1.0 FTE. As would four part-time employees who each work 10-hours per week, totaling 40 hours.

How to Calculate FTE for Individual Projects

Knowing your accurate FTE will help determine responsibilities for employees. Let’s say you have an upcoming project and you need to determine all your costs. You’re able to establish all of your personnel requirements by calculating FTE. There are 8 working hours in the day on Monday, and the DEF Company staff works 136 hours during that day.

Part-time employees are included as a fraction of one FTE based on how much they work. Use your FTE calculation to find out whether your company qualifies. If so, confirm you’re offering the right level of health insurance to your team to prevent a tax penalty. The paycheck protection program or PPP is a scheme rolled out by the government to encourage companies to keep workers on their payroll. To claim PPP, you may need to keep a PPP chart for the scheme’s duration to show your employee retention.

How to calculate FTEs for different laws or programs?

Imagine that, with the same FTE, an employee can deliver 100 units, while another only delivers 30. In this case, the calculation may show that the first professional is overqualified for the position, whilst the other needs more training and development. Being a basic criterion in staff controlling, it is one of the most important staff indicators for companies.

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. Full-time equivalent is a unit of measure that helps employers calculate the number of hours worked by all employees in their company. Some businesses list this information in their employee handbooks or offer letters. For example, a business might state, “Our standard work hours are Monday to Friday from 8 a.m.

Example of an FTE calculation

Sean Nguyen, Internet AdvisorAs for Sean Nguyen, Director of the Internet Advisor, outsourcing to streamline processes is another essential trend that businesses will continue to apply. AdministrationGeneralist BPOs help organizations accomplish general business administration and operational activities. This includes data entry, appointment setting, and other related functions. Talent and HRBusinesses can delegate HR, recruitment and compliance to professional employer organizations to maximize recruitment and workforce management.