To complete the Paycheck Protection Program (PPP) application and to verify that you have retained enough employees, you need to calculate the “full-time equivalent employee.” Here is a quickie video to show you:
Here are the steps:
- Find the report with the hours for the date range
- Count the number of paydays in that date range
- Assuming your paydays are every other week, multiply the paydays by 60. Reminder: A full time-employee is 30 or more hours per week. For twice a month paydays, use 65 hours.
- Anyone who is salaried or works over the number of hours in Step #3 counts a a full-time employee.
- For everyone else, divide the actual hours by the number of hours in Step #3, then add these up. This is the full-time equivalent of all of your part-time crew.
- Add Steps #4 and #5 for your total full-time equivalent employees.