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An FTE salary is an employee salary converted into a full-time equivalent salary within a full year, regardless of whether the said employee holds a full-time or part-time position. The actual workload is not taken into consideration for this calculation. However, bear in mind that this only applies to positions that work 30 hours per week when assigned a 0.75 FTE position, i.e., the IRS minimum for a full-time definition.

FTE Calculation Example

In this step, you have to add the total work hours worked by each full-time employee and total working hours worked by each part-time employee. First, it is necessary to determine the number of hours worked by part-time employees. As you can see, the part-time employees are converted into the performance of a full-time employee. So the FTE is not the number of employees in a company, but the equivalent of a full-time employee.

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In this example, your company has the equivalent of 5.24 full-time employees, or a 5.24 FTE. By this measurement, your four part-time workers amount to just less than https://www.bookstime.com/articles/construction-billing-methods one and one-quarter of a full-time equivalent employee. Some labor laws and employee benefit programs are linked to how many employees a company has on its payroll.

What is 75% FTE? When is 75% FTE or higher considered full-time?

For example, if the establishment requires 30 hours of classwork per week and the student only completes 15, this will account for 0.5 FTE. A statistical measure that counts the number of hours that a full-time employee works. As was the case with the monthly FTE, this equation presumes that all work weeks had a total of 153 work hours. For example, measuring FTE from month to month, or even week to week, helps to track overall workloads and expected employee output, even as part-time schedules chop and change. First and foremost, make a list of all your employees within an organization. Employers can use FTE to evaluate their hiring capacity and current payroll, as well as for reporting purposes related to labor laws and employee benefit programs.

• By this measurement, your four part-time workers amount to just less than one and one-quarter of a full-time equivalent employee.
• An explanation of how FTE is calculated and the various ways in which a business can use this metric when forecasting and budgeting.
• Later, she joined “Desklog,” an automated time-tracking software, as a project consultant.
• Divide the total hours worked by all of your employees by the number of available full-time hours in a year (usually 2,080).
• Furthermore, this value is used only as a basis for calculating the annual FTE and reflects the hours of an employee who works 5 days a week, 8 hours a day.

Srijitha Ashok began her career as a software developer following her graduation . Later, she joined “Desklog,” an automated time-tracking software, as a project consultant. The author has six years of expertise as a productivity and time management researcher. Her vast knowledge in the industry fte meaning has enabled her to address issues pertaining to time tracking software,project management, productivity analysis and performance management. She has been researching several strategies for how productivity and time management might assist a business in effectively managing its time flow.

The IFTE of 4 employees equals 160 work hours (assuming a regular work week has 40 hours). FTE for one full-time employee equals 1, for 3 employees, equals 3. The first step to calculating the FTE of your company is to make a list of all of your employees.

FTE Calculator