July 23, 2020
We overstated the number of employees on our loan application because we included independent contractors by accident. Will this create an FTE reduction for us?
Posted by Armanino Financial Advisory Team
No. Your FTE Reduction Factor calculation definitely should not include independent contractors, only W-2 employees. Compare the average W-2 FTEs during your Covered Period with the average W-2 FTEs you had during the prescribed baseline period, disregarding any independent contractors. The fact that you included them erroneously when you applied for your loan is not relevant to this calculation.