July 23, 2020
Our baseline FTE is 95 and our Covered Period FTE is 110. Can we lay off 5 people without it impacting our forgiveness amount?
Posted by Armanino Financial Advisory Team
Simple math would say that 110-5=105, which is greater than 95. The requirement for not triggering the FTE Reduction Factor is that the ratio be 1.0 or greater. In this case, it would be greater than 1.0. Also, remember that the Covered Period FTE calculation is the average of the entire period, so if you were at 110 for most of the period and only dropped to 105 toward the end, your average would be somewhere between 105 and 110.