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Level 2

Full time equivilant employees

We are a contractor that employs people for more and sometimes less than 40 hours.  We seem to have a large turn over.  I am looking for an easy way to get the number of Full Time Equivilant Employees.

 

 

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Best answer April 02, 2020

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QuickBooks Team

Full time equivilant employees

Good afternoon, dgray. 

 

I'd love to help you get to the bottom of this and figure out how to see Full-Time equivalent employees. I have a quick question. 

 

You mentioned you are a contractor, does that mean these employees with high turnover are 1099 contractors, or are they W-2 employees that work for you? 

 

Thanks for the info! Have a wonderful evening. 

View solution in original post

Community Champion

Full time equivilant employees

I just went through FTE calculations and here is how.

 

Run a payroll summary report which should show hours for each employee during the time period. Export it to excel. In the row for Adjusted Gross pay you will make some hour adjustments as follows

 

Any employee with more than 2080 hours per 52 weeks  gets reduced to 2080. Any salaried employee has to have their hour equivalent added . Then in far right totals whatever the total is divide by 2080 (or number of 40 hour weeks in your timeframe) and round down to next lower full number.

 

Thus if you have a total of 7000 hours divided by 2080 and rounded would be 6

 

Hope this helps

View solution in original post

11 Comments 11
Highlighted
QuickBooks Team

Full time equivilant employees

Good afternoon, dgray. 

 

I'd love to help you get to the bottom of this and figure out how to see Full-Time equivalent employees. I have a quick question. 

 

You mentioned you are a contractor, does that mean these employees with high turnover are 1099 contractors, or are they W-2 employees that work for you? 

 

Thanks for the info! Have a wonderful evening. 

View solution in original post

Community Champion

Full time equivilant employees

I just went through FTE calculations and here is how.

 

Run a payroll summary report which should show hours for each employee during the time period. Export it to excel. In the row for Adjusted Gross pay you will make some hour adjustments as follows

 

Any employee with more than 2080 hours per 52 weeks  gets reduced to 2080. Any salaried employee has to have their hour equivalent added . Then in far right totals whatever the total is divide by 2080 (or number of 40 hour weeks in your timeframe) and round down to next lower full number.

 

Thus if you have a total of 7000 hours divided by 2080 and rounded would be 6

 

Hope this helps

View solution in original post

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Level 2

Full time equivilant employees

THANK YOU.  This solutions worked.  Very Helpful !

Highlighted
Level 1

Full time equivilant employees

How do you get 6 as an answer below? see your summary

hus if you have a total of 7000 hours divided by 2080 and rounded would be 6

 

I just went through FTE calculations and here is how.

 

Run a payroll summary report which should show hours for each employee during the time period. Export it to excel. In the row for Adjusted Gross pay you will make some hour adjustments as follows

 

Any employee with more than 2080 hours per 52 weeks  gets reduced to 2080. Any salaried employee has to have their hour equivalent added . Then in far right totals whatever the total is divide by 2080 (or number of 40 hour weeks in your timeframe) and round down to next lower full number.

 

Thus if you have a total of 7000 hours divided by 2080 and rounded would be 6

 

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Level 1

Full time equivilant employees

Hi John,

 

Just wondering how you came to the answer of 6?  

(7000 hours divided by 2080 and rounded would be 6)  I come up with rounded to 3.  What am I missing?

 

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Level 1

Full time equivilant employees

would this work for the PPP loan forgiveness calculation?  We have same issue of up and down payroll of all W-2 employees - (Restaurant) 

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Level 1

Full time equivilant employees

Maybe. The solution given uses a 40 hour work week to determine a full time employee, but benefits calculations and probably the SBA (they still need to publish the definition) will use 30 hours as the definition of a full time employee. Everyone working over 30 hours counts as a full time employee. Add the total of hours for all employees that worked less than 30 hours and divide that number by 30 to get FTE is 30 ends up being the benchmark the SBA uses. What a mess...good luck

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Level 1

Full time equivilant employees

The FTE calculation is by week which means that unless you want to supply 26 reports that are ridiculously huge , this is not a viable solution for PPP . I am dismayed that we cannot have a simple report- defined dates across the top, employees down the side and hours in the "cells".  The information is all present, just not readily available. It needs to be.

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Community Champion

Full time equivilant employees

Sorry for confusion in a previous example. I forgot that was based on bi-weekly pay (and IRS stipulation of 40 hour s equals full time) In our operation we also consider anyone working less than 40 hours to be less than full time and ineligible for full-time benefits. The SBA obviously thinks different.

 

In any event the SBA is certainly messed up as it makes us count actual employees whereas the IRS determiner is irrespective of actual employees but solely on total hours worked. (subject to a maximum 40 hours average per week which works out to max 2080 hours over 52 weeks)  I calculated FTE for  our loan app based on all hours including overtime where only total hours count and FTE can be elevated by overtime. So, at least that number on the loan app is not the number I have to live with.

 

And the IRS in all their examples say to round down.  The SBA,gov website says little to nothing on how to actually calculate FTE for them for any funding, let alone PPP.  It is up to your banker to accept your calculations as presented and to not re-calculate based on data.

 

The FTE calculation for PPP loan forgiveness, unless I am missing something, is average weekly FTE over your 8 week period compared to one of two lookback periods 2/15/19-6/30/19 or 1/1/20-2/29/20, although an email from my bank says the FTE should be average MONTHLY. Does this mean we have to convert our bi-weekly payrolls into monthly equivalents? We do not always pay twice per month. Some months will have 3 pay periods or the equivalent of 30 working days whereas most will only have 20 working days.

Highlighted
Level 1

Full time equivilant employees

I found it easier to run a Payroll Item Detail Report.  Customize to include Quantity the export to excel.  We are also a contractor and keep a very close eye on FTE.  I run the report weekly,  monthly, quarterly & annually just to be safe.  

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Level 1

Full time equivilant employees

Quickbooks should have a report for this.  Also a contractor.  I use the report:  Report/Employees & Payroll/ Workers Comp by Code & Employee.  I export to excel.  Delete all columns except employee name & hours.  In cell to the right of hours I use function =IF(D39>30,1,0) (meaning if hours are greater than 30 count as 1 Full time employee) and in the next cell I use function =IF(D39<30,D39,0) ( meaning if hours are less that 30 put hours in that cell).

Total each column.  The first column will give you the number of Full time employees.  The second column divide by 30 and that give the FTE of part timers.  Add the two together and that is your FTE.

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