This is how I figure it out. We pay weekly.  I have two ways.

FIRST:

1. AVERAGE NUMBER OF EMPLOYEES – ADD THE TOTAL NUMBER OF EMPLOYEES PAID IN EVERY PAY PERIOD FOR THE YEAR.
2. Open payroll center > transaction tab > paychecks
3. Change the date to be the year in question 1/1/24-12/31/24.
4. Click excel arrow and export transactions to excel.
5. Remove the Christmas bonus check and then take the number of lines and divide by 52 2263/52 = 43.52 so the AVG number of employees is 44 because you round up.

SECOND:

1.  From QB menu bar click FILE > PRINT FORMS > PAY STUBS
2. Select the dates of the year in question 1/1/24-12/31/24
3. click preview (this will take a minute to generate)
4. once the preview is complete look at the total number of pay stubs and divide by the number of pay periods.

Quickbooks should make this easier to figure out since it is a requirement for most businesses but I don't think they are in the business of caring what would make life easier. LOL 

I hope this helps!