If a normal work week consists of 40 hours, an employee who works for 40 hours per week has an FTE of 1.0 while a part-time employee working only 20 hours per week has an FTE of 0.5. For a business, specifically those with a large number of part-time workers, converting worked hours into FTEs is important in helping the company know how many full-time employees the part-time workers are equal to. Several federal programs in the United States—such as the Paycheck Protection Program —use FTE to determine employer eligibility. FTE is also used in the United States to determine whether an employer is an ALE for the fiscal year.

Whether an FTE of 0.75 is considered full-time will depend on the company policy made by the employer. If 0.75 FTE is considered full-time in a company, such employees may qualify to apply for the Public Service Loan Forgiveness program, as stated above. The total of 30 hours for exempt positions who work 40 hours per week under normal conditions.

What Is the Difference Between FTE and Headcount?

Many times, FTE is confused with “full-time employee”, so before we move on to the details and procedure to calculate metrics lets look at what is the difference between the two concepts. Let’s imagine that the expected project duration is 1280 hours, while the 1 FTE in our case is 40 working hours.

According to the Affordable fte meaning Act , employers with 50 or more FTEs are required to offer ACA-compliant benefits. The ACA defines a full-time employee as someone who works 30 hours per week or 130 hours per month. If your company considers the number of hours for a full-time position as 40 hours per week, note that working 30 or more hours counts as 1 FTE for purposes of ACA compliance.

Who qualifies as an FTE employee?

The measure is often annualized to cover the average annual full-time equivalent students and is designated by the acronym AAFTE. First, a company with 100% FTE is not subject to the employer shared responsibility provisions of the ACA. To plan the workload and determine the necessity to hire more employees.

• In most cases, full time equivalents measure an employee or student and/or their workload.
• Under normal circumstances, a full-time employee works 8 hours a day for 5 days a week.
• 100% FTE or 1.0 FTE refers to one full-time employee or a number of people who make up the duties of one full-time position.
• FTE refers to one full-time employee or the equivalent of a full-time employee.
• Considering that the FTE unit of measure is based on the total number of hours worked — it may not indicate the actual number of people working in a company.