How many hours is a Full Time Equivalent Employee under the CARES Act?

[PayrollHRGuy]

What is the name of your state? Arkansas

I can't find anywhere that states clearly how many hours an FTE is under the act and I've had three accountants/lawyers give me three different answers.

32? 40? Something in between?

 

[xylene]

It's almost like it was deliberately ambiguous to exclude people until they get called out on it.

Like the stimulus payment and tax records.

 

[TigerD]

I don't believe that is relevant. It is jobs and continuing the rate of pay. We just completed our paperwork and I had to provide all of last years 941s and our 940, along with a monthly payroll summary per employee. It was rather involved. Fortunately, we didn't have a lot going on after I got back from court. My banker said they will look at our 941s for verification. --- duh - I was thinking about the paycheck protection act.

What section of CARES are you referring to?

 

[PayrollHRGuy]

I haven't had a chance to get down in the weeds on it but on the applications, it asks, "Number of Jobs _______".

I've picked up through various sources that they want FTE and I have clients with employees that work anywhere from 3 to 50 hours per week. We need a number to use.

I also just heard from a President of a fairly large regional bank that several banks are putting the brakes on these loans because of the lack of guidance they are getting from the Feds.

 

[cbg]

We're supposed to have a meeting next week to get fully up to speed on these things. I'll let you know if anything relevant comes up.

 

[TigerD]

I asked that too. I counted part timers and since they are going off of the 941s, it is clear that the part-timers are part-timers.

 

[PayrollHRGuy]

I asked that too. I counted part timers and since they are going off of the 941s, it is clear that the part-timers are part-timers.

That is also problematic because while some of these clients may well have 100 employees during a quarter they may only have 50 on any given payroll.

 

[LdiJ]

I don't know if this will help or not, but the last time that the government wanted "full time equivalent" they had companies adding up all of the hours of all of the employees and dividing them by 40 hours to determine "full time equivalent". So, lets say that in one week (for example) you had 40 employees working 40 hours per week, and 60 employees working 20 hours per week, that would be a total of 2800 hours divided by 40 = 70 full time equivalent.

 

[PayrollHRGuy]

I don't know if this will help or not, but the last time that the government wanted "full time equivalent" they had companies adding up all of the hours of all of the employees and dividing them by 40 hours to determine "full time equivalent". So, lets say that in one week (for example) you had 40 employees working 40 hours per week, and 60 employees working 20 hours per week, that would be a total of 2800 hours divided by 40 = 70 full time equivalent.

What was that one for?

 

[LdiJ]

What was that one for?

That is when they were giving credits for small businesses providing health insurance. It was right at the beginning of Obamacare.

 

[cbg]

However, full time for purposes of the ACA is 30 hours.