Benefits. Simplified.

From an employee benefits perspective, a Full-Time Equivalent (FTE) is a standardized way to measure the workload of employees, combining full-time and part-time hours into a single, comparable number. It represents the total number of hours worked by all employees averaged into full-time positions, typically based on a 40-hour workweek. Calculating FTE is crucial for benefits administration because it helps determine eligibility for certain benefits, compliance with regulations like the Affordable Care Act (ACA), and staffing levels. By understanding FTE, businesses can more accurately plan their benefits offerings and ensure they meet legal requirements while fairly supporting their workforce.