Some laws, such as the Patient Protection and Affordable CARE Act (PPACA), specifically define how a full-time equivalent (FTE) is calculated and require employers to count FTEs to determine how the law applies to their organization.

Employers may use the FTE calculation for different purposes, such as benchmarking revenues or profits per employee. Converting hours worked by part-time employees into full-time equivalents can be helpful when calculating these metrics.

The calculation of FTE is an employee's scheduled hours divided by the employer's hours for a full-time work week. When an employer has a 40-hour work week, employees who are scheduled to work 40 hours per week are 1.0 FTEs. Employees scheduled to work 20 hours per week are 0.5 FTEs.

FTE calculations are about hours worked rather then number of employees. You could have four employees and only one FTE. Four 0.25 employees would be 1.0 FTE. Four employees working 10 hours per week, where the total would be 40 hours worked, or one FTE based on a 40-hour work week.

The report attached to this article will show the number of hours and FTE hours for up to 5 pay periods. The FTE calculation is the Total hours divided by a 40 hour work week. You would select the report check box to only include Regular and Overtime Pay types.

Attachment: PRHoursFTEReport.rpt

See How do I save, add, and print a report design? for steps to print the report.