About the Full-Time Equivalent (FTE) Calculator
FTE converts mixed schedules, part-time hours, and seasonal labor into a standard full-time equivalent count for workforce planning and ACA screening. HR teams can total paid hours, select the weekly or monthly measurement basis, and see whether staffing approaches the 50-full-time-equivalent employer threshold used in US employer shared responsibility analysis.
How it works
- Enter paid hours for each employee group or reporting period.
- Choose the standard full-time hours basis used by your organization.
- Select ACA mode when you need full-time employee and equivalent counts for ALE screening.
- Review total equivalents, headcount context, and any 50-FTE employer flag.
Frequently asked questions
How is FTE different from employee headcount?
Headcount counts people. FTE converts hours into an equivalent number of full-time workers, so two half-time schedules can equal one full-time equivalent.
What is the ACA full-time threshold?
For employer shared responsibility rules, a full-time employee generally averages at least 30 hours of service per week or 130 hours of service in a month.
How are part-time hours counted for ACA ALE status?
For the monthly full-time equivalent calculation, hours of service for non-full-time employees are totaled, subject to the regulatory cap per employee, and divided by 120.
Do overtime hours increase FTE?
For ordinary staffing analysis, overtime can increase paid-hour equivalents. For ACA full-time equivalent calculations, apply the specific hours-of-service rules rather than a simple payroll-hours shortcut.
Are seasonal workers included in the 50-FTE test?
Seasonal worker rules can affect applicable large employer status. Employers near the threshold should review the ACA seasonal worker exception with benefits counsel or a qualified advisor.
References
- Internal Revenue Code Section 4980H - employer shared responsibility provisions
- 26 CFR 54.4980H - full-time employee and full-time equivalent employee rules