Fte calculation tool
COBRA: COBRA is a federal program that requires certain qualified employers to provide continuation of health insurance to employees and their dependents upon the termination of their employment.If your business has less than 50 FTEs, you’ll have the option to apply for a small business tax credit of 50% if you choose to offer health insurance to your employees. Affordable Care Act (ACA): The ACA requires small businesses with at least 50 FTEs on staff for the prior year to provide essential, affordable health insurance to their employees.It also allows employers to examine total hours worked across the business rather than looking only at how many full-time and part-time employees are on staff.Įmployers also need to calculate FTEs in order to be in compliance with certain federal laws and programs including: An FTE employee is not necessarily a single employee it may be a combination of several part-time employees who, when their hours are added together, create a full-time equivalent, or FTE, employee.Ĭalculating FTEs can be useful for budgeting current and future workforce needs.
FTE CALCULATION TOOL FULL
If you currently employ both full and part-time employees, you need to determine how many FTE employees you have. In order to determine the number of FTEs created by your part-time employees, you would add their number of hours worked and divide it by the number of hours in a full-time workweek.įor instance, if your full-time workweek is 40 hours and you have two part-time employees who work 20 hours each week, when their hours are added together, they create one FTE. Each FTE is equivalent to the number of hours your full-time employees work. Full-time equivalent, or FTE, is a metric used to determine how many full-time and part-time employees you currently have on staff.