FTE stands for full-time equivalent and it is the number of hours worked by a full time employee during a fixed time period.FTE converts workload hours into the number of people needed to complete that work, which can help to simplify scheduling.FTE helps project managers estimate labor costs.If overtime costs are making it worthwhile to open up a new position, managers should look at FTE.
Step 1: The hours worked by part-time employees are listed.
Accounting records can be used to identify hours worked by part-time employees.This applies to companies that have both full time and part time workers.Divide the weekly hours by the number of weeks an employee has worked.Add the results together to get their total hours.2,050 part-time hours are 450 + 1600.
Step 2: Estimate the number of hours worked by full-time employees.
A full-time employee works a maximum of 40 hours a week for over 120 days a year.If you divide the number of workers by 40, you get 5 days a week.Multiply the result by 52 weeks in a year for 6 full time workers.There are over 12,700 hours of full-time hours.
Step 3: Combine the hours worked by full-time and part-timers.
This is the total number of hours worked by the employees.14,080 hours are divided into 12,480 full time and 1600 part time.
Step 4: The hours worked should be divided by the number of full-time hours.
The FTE of the company will be determined by this.There are paid leave and holiday hours.As part of the hours worked, they are already accounted for.You don't have to make special calculations for these hours.The hours are divided by 2,080.The fixed number is 8 hours a day, 5 days a week and 52 weeks a year.You will be able to calculate your yearly FTE with this final step.Divide the total hours by 173.33 to find the FTE per month.Divide the total hours by 8 to get FTE per day.80 daily hours 8 is 10 FTEs.
Step 5: There's an online FTE calculator.
You can simply enter the number of full-time employees and hours worked by part-timers with these online tools.The online tool will give you an estimated FTE value.The calculator can be found at the healthcare.gov shop.
Step 6: Find the worker data.
You will need both the total number of employees and the hours worked by them.You should be able to find this information in your accounting records.Full-time employees work more than 30 hours per week.
Step 7: Your data should be input.
The employee data can be entered into the calculator.Check to see if the hours worked are entered on a weekly, monthly, or annual basis.Make sure your information is correct by double-checking it.
Step 8: Use the FTE calculation only as an estimate.
The calculation you get from the FTE calculator tool is an estimate.For guidance or educational purposes, you can use this number to estimate FTE values.These calculations should not be used as a substitute for legal or tax advice from a professional in the field.You will need to use a different method when you need a 100% accurate calculation.
Step 9: If you want to calculate your company's FTE, pay a tax professional.
Calculating FTE is important to make sure it gets done correctly.If you make a mistake in your calculations, it can have a negative impact on your business.If you don't feel confident in your ability to calculate your business's FTE perfectly, pay an accountant with experience in this field to do it for you.You need to give this person important information about your business so that they can calculate your FTE.They need access to your employee files, previous tax documents, and similar types of documents.
Step 10: A legal professional can help you.
Lawyers with experience in this area will be able to help you with your calculations to make sure they are done correctly.Corporate or tax lawyers can help you calculate your FTE.
Step 11: To calculate business metrics, use FTE.
FTE analysis can be used to determine how many employees are needed in a business.Business owners can see how employee growth has changed over time by analyzing FTE changes.FTEs can be compared to other metrics to find out how much additional employees contribute to the business's profitability.If you use part-time employees, you might want to convert their hours into full time equivalents.FTE can be used to compare headcount to revenues or square footage, which may be useful for making decisions about budgeting and hiring.
FTE can be used to calculate the size of a small business for health insurance purposes.The Small Business Health Options Program marketplace requires that businesses have less than 50 FTEs.Business owners can get affordable and high-quality employee insurance policies through this program.Businesses have to meet other standards.
Step 13: FTE can be used to calculate studentEnrollment.
FTE is used by universities and other educational institutions to track full and part-time students.Class hours are used instead of work hours, with full-time students being those with a full credit load and part time students taking fewer than 12 hours per week.Other schools may use different credit hour calculations.