July 23, 2020
I have two employees who asked for and were granted reduced work schedules during the Covered Period. Does that count as a headcount reduction?
Posted by Armanino Financial Advisory Team
Any employee who voluntarily requested and received a reduction of their hours does not count as an FTE reduction. You should list them at the bottom of Table 1 on the line that says “FTE reduction exceptions” in Box 2 and include their average FTE prior to the reduced work schedule going into place. For example, they worked 32 hours per week on average normally, but following their voluntary reduction they were down to 16 hours a week. You should enter 0.8, or 32/40 in Box 2 for that employee.