**How
to Calculate Full Time Equivalent Employees *** (this page was updated:1/31/09)*

How to calculate the number of full time equivalent employees:

(Note you are counting hours worked, not people!)

For filing annually:Take the payroll year as defined by DUA (Department of Unemployment Assistance)

Include all paid hours such as paid leave, sick time, paid vacation time, jury duty time, etc. (do not include non W-2 wages-ie independent contractors)

Only count the payroll hours of employees who worked at least one calendar month.

Count a maximum of 2000 hours for any one employee.

Divide the total hours by 2000 to get your number of full-time-equivalent employees

For filing quarterly:Take the payroll quarter as defined by DUA (Department of Unemployment Assistance)

Include all paid hours such as paid leave, sick time, vacation time, jury duty time, etc. (do not include non W-2 wages-ie independent contractors)

Only count the payroll hours of employees who worked at least one calendar month.

Count a maximum of 500 hours for any one employee.

Divide the total hours by 500 to get your number of full-time-equivalent employees