For example, if your full-time employees work 40 hours per week and part-time workers average 20 hours per week, divide 40 by 20 and you’ll get 2, meaning two part-time workers equal one full-time employee. In other words, one part-time employee is equal to 0.5, or half, of a full-time employee for hours, worked. Full-time equivalent is a way for employers to standardize their headcount and combine their part-time workers’ hours to figure out how many full-time employees would work those hours. Like we mentioned, some employees count 37.5 to be the standard workweek, which is the number of hours actually worked when you exclude the breaks. An understanding of FTE also helps employers decide when to hire staff for short-term projects. In this way, scheduling projects based on the FTE calculation allows for greater accuracy in workforce planning and the efficient allocation of resources.

• It might sound cold, but it’s a vital metric when companies are applying for government loans, and when determining whether the company is large enough to have to follow certain laws.
• Before reading this article I was in a haze, but this article reassured me and got me going.”
• When managing the assignment of resources to cards, it may happen that they work above or below their usual work hours.
• Furthermore, this value is used only as a basis for calculating the annual FTE and reflects the hours of an employee who works 5 days a week, 8 hours a day.
• And some state and federal employment laws only apply to companies who meet a certain threshold of FTE employees.
• Similarly, if an employee works 20 hours a week, then there should be two such employees to complete the full-time schedule.
• Determine how many hours an employee works in a year by multiplying the number of hours they work in a day, by the number of days they work a week, by the number of weeks they work a year.

Apart from the FFCRA, certain states and local jurisdictions also require employers to provide paid sick leave to employees. These laws typically require the employee to work in the jurisdiction for a minimum number of hours to be eligible for sick leave.

Q: Why is the number of FTEEs important for the purposes of the ACA?

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That is to be incurred during the completion of the project. Moreover, in the cases of companies with a large number of part-time employees, the FTE helps to know how many part-time employees are equal to full-time employees. It shows the number of work hours of an employee compared to a full-time employee. Do you want to calculate how much it is to hire employees abroad will actually cost you? There are several tools online called “employment calculators” to get an estimate about your overall costs for employees in different countries. This could refer to either a single full-time employee or two or more part-time employees whose contributions add up to the equivalent of one full-time worker. Figuring out exactly how many people work for a company is more complicated than asking for a show of hands.

What Is Full-Time Equivalent (FTE) & How Is It Calculated?

It will help you plan a fte meaning or your work according to deadlines and your budget. Outside of the business environment, FTE is also used to measure a student’s class load or involvement in a school project… It seems like we never leave school behind. If you’re ever asked to calculate FTEs for your company, the person or organization asking you for the figure should be able to outline exactly how they expect you to arrive at your result.