All You Need to know about FTE Full-Time Equivalent

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To identify the FTE of part-time employees, divide the total hours worked by part-time employees by the annual hours worked by one full-time employee (i.e., 2,080 hours). To calculate FTE correctly, you’ll need to quantify your total weekly available work hours; it’s an important component of the calculation. Available hours per week is the number of hours your business considers standard work time multiplied by the number of employees you require to accomplish those related needs. Salaried employees who work full time or are expected to work a full-time schedule (even if they don’t report their actual hours each week) are considered full-time employees in both cases. Full-time equivalency is a metric that quantifies the number of full-time employees at an organization based on hours worked, and quantifies how many part-time employees add up to a full-time employee. For example, if your organization’s work week is 40 hours, two part-time employees who each work 20 hours in a week would equal one FTE.

In most cases, full time equivalents measure an employee or student and/or their workload. If you’re concerned about staying compliant, consider software such as Homebase that will track your employee hours, provide reporting, and can also prepare your time sheets for payroll. This process needs to be repeated for every payroll week throughout the year. If your employees work the same number of hours every week, the calculation process will be simple.


First, let’s look at what full-time equivalent or FTE actually means. The full time equivalent, often abbreviated as FTE is an indicator that reflects an employee’s productive capacity. An FTE of 1.0, for example, corresponds to the hours worked in a day for a full-time employee.

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Calculate the number of hours employees have worked per month. For the most accurate FTE calculation, hire a tax lawyer or accountant to calculate them for you. Managing employees, time tracking, overtime, and time-off data in disparate systems is complicated. Join us on this webinar case-study to see how Vimeo was able to leverage the BambooHR and Boomr integration to simplify their workforce management and streamline their processes. To convert an employee’s full-time equivalency into standard hours, multiply their FTE rate by 40. For example, if an employee has an FTE of 0.80, multiplying that number by 40 means that an employee works 32 hours a week.

The role of FTE in calculating eligibility for the Paycheck Protection Program (PPP)

On the other hand, a full-time equivalent is one or more employees whose work hours combine together to total at least 30 hours per week or 130 hours per month. The ACA’s mission is to reduce the cost of health insurance coverage for eligible individuals. The act includes cost-sharing reductions and tax credits to help lower costs for lower-income families and individuals. It requires small group health plans to meet certain requirements, such as covering essential health benefits (e.g., preventative services).

Holiday hours and other paid leave are already accounted for as part of the hours worked so you don’t need to make any special calculations. If your business has a 32- or 35-hour workweek, then multiply the number of employees by that amount instead of 40. For example, if a part-time employee works for 26 hours one week, their FTE value would be 0.65 (26 hours worked / 40 hours).

How does FTE impact employment within the company?

Still, in this case, it’s more reasonable to take some bigger periods, let’s say, 90-day or 120-day periods, during which you can take the average number of hours spent by part-time employees. Let’s say you have 100 employees, but 18 of those employees are part-time and only work 10 hours a week. Altogether, those 18 employees only account for the hours of four and half full-time employees.


For example, if two part-fte meaning each work four hours per day for 10ten days apiece during a weekly pay period, their 40-hour combined total represents 1.0one FTE on the company’s payroll for that pay period. FTE stands for full-time equivalent, and it’s a unit of measurement equal to the number of hours typically worked by a single full-time employee at a given company. FTE is a way for employers to add up and compare a mix of part-time and full-time workers, by combining their relative working hours into one simple and easy to understand value.