July 23, 2020
Our work week is 35 hours and we consider that full-time. Do we still need to use 40 hours as an FTE?
Posted by Armanino Financial Advisory Team
Yes. The definition of FTE for purposes of the forgiveness application is a 40-hour work week; however, you are also calculating FTEs in a baseline period for comparison in the FTE reduction calculation. In both cases, if an employee worked 35 hours in the baseline period and 35 hours in the Covered Period, they would equal each other at 0.875, or rounded to 0.9 FTEs, which would not result in a reduction.