Financial Advisory Blog

Armanino’s Financial Advisory blog is your source for thought leadership around cloud ERP and accounting solutions and integrations. Supported by the Cloud Accounting Institute and numerous experts in cloud, finance, reporting, integration, compliance, and technology, Armanino’s Financial Advisory blog features must-read content on what’s happening in the finance industry, case studies, white papers, and much more.

July 23, 2020

I still do not understand what an FTE is. We have no “part time” employees.

Posted by Armanino Financial Advisory Team

FTE stands for “Full-Time Equivalent” employee. In the PPP program, full-time is defined as 40 hours of work per week. Any employee paid a salary is considered one full-time equivalent unless they are on a reduced hours program where their salary is reduced accordingly (e.g., an employee with a salary of $83,200 asks for a reduced schedule of 30 hours per week instead of 40, and their salary is reduced accordingly to $62,400 (75% of $83,200)). Such employee would be considered a 0.75 FTE because of the reduced standard hours, even if they worked more than 30 hours some weeks due to business needs.


If you have no “part-time employees,” then your FTE count is simply 1.0 times the number of employees you have, because presumably everyone is paid a straight salary every pay period regardless of hours worked.

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