July 23, 2020
In our company, we have a lot of part-time employees (non-seasonal). They were laid off when COVID hit and when we got our PPP loan, we made a good-faith, written offer to rehire all of them. Many declined. For purposes of the FTE Reduction Exception, how exactly does that work? Do I add them back in as .5 headcount and then recalculate my FTE Reduction %? If I don’t use .5, then what do I use?
Posted by Armanino Financial Advisory Team
First, you don’t need to do any calculations of headcount — the model automatically does both the standard and simplified FTE calculations based on the hours worked data your entered in the Pay Cycle Input tab(s). For the employees you described, simply list them in Table 1 of the Pay Cycle Input tab and put a “Yes” in column E next to their name indicating they qualify as an Exception. The model will take it from there.