Calculating FTEs

Full Time Equivalency (FTE) Calculations

Calculating your full time equivalency number can be accomplished in more than one way but the key is to be consistent and use the chosen method throughout your forgiveness application.

  • A Full Time Equivalent (FTE) is defined based on a work week of 40 hours versus the standard of 30 hours for some other SBA programs and the Affordable Care Act.



Full-time FTEs – If an employees worked 40 or more hours a week on average (overtime does not matter) they would count as a FTE. For example, if you had one employee that worked 45 hours/week on average, another that worked 40 on average, and one that worked 50 hours/week on average you would have 3 FTEs.

Part-time FTEs – These are part-time employees that did not work more than 40 hours on average. You will take all of these part-time employees’ hours and add them together. Divide the entire total of part-time employee hours by 40 and round to the nearest tenth to obtain your part-time FTE total. For example, if you have 4 part-time employees who each worked 20 hours per week on average, that would be 20 + 20 + 20 + 20 = 80 / 40 = 2 FTE resulting from your part-timers.

Add them together: Now, you would add your full-time FTEs and your calculated part-time FTEs to get your total FTEs. Using the examples above, you would have 3 full-time FTEs + 2 part-time FTEs = 5 FTEs total.



SBA Method: The SBA has provided an alternative and possibly simplified method to calculate FTEs by allowing you to use 1 FTE for any employee working more than 40 hours a week, and 0.5 for all other employees.