July 23, 2020
If a company lost a contract in March/April 2020 and the employees working on the contract transferred over to the new company that took over the contract, will that reduction still affect the FTE calculation?
Posted by Armanino Financial Advisory Team
Yes. The number of FTEs during your Covered Period was likely reduced as compared to your chosen baseline period in the FTE Reduction Factor calculation. The reason you outlined does not qualify as an FTE Exception.