The FTE (Full-Time Equivalent) Forecast tab is designed to help you identify which employees are working a specific number of hours over a period of time. This is intended to assist you in better understanding your workforce and who is approaching the threshold of becoming a full-time employee under the ACA guidelines. FTE is the number of working hours that represents one Full-Time employee during an established period, such as one year or one month.
- Expand 'Settings' and click Affordable Care Act from the menu.
- Click the FLE Forecast tab.
To Generate the Forecast:
- Select how many months to look back on ( from 3 to 12 months).
- Select the number of hours in the "Hour Threshold" drop-down menu
- Click .
This will evaluate employees' Full Time Equivalency based on the Weekly Hours of Service.
If you wish to calculate the number of hours monthly, enable "Use Monthly Hours of Service". By checking the box, the FTE Forecast will evaluate employees' Full Time Equivalency by Monthly Hours.
This FTE Forecast will help administrators to track part-time employees and determine which part-time employees are approaching or close to Full-Time Equivalent.
In the example image above, the employee Pete Cook is working thirty-three hours weekly (on average). Pete has gone over the 30-hour threshold and should be considered Full Time.
How is FTE Determined?
The calculation to determine Full Time Equivalency currently utilizes the following formula:
- Weeks in Range = (Look Back Period Effective Date) - (Number of Look Back Months)
- Total Hours in Look Back Period = ((Hours in Period from Time Clock) + (Hours in Period from Time Sheet) + (Paid Time Off Hours in Period))
- Average Hours of Service = (Total Hours in Look Back Period) / (Weeks in Range)
If the Average Hours of Service is Greater Than or Equal to 30 Hours per week, then the employee is identified as "Full Time Equivalent".