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.