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:

1. Find the report with the hours for the date range
2. Count the number of paydays in that date range
3. 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.
4. Anyone who is salaried or works over the number of hours in Step #3 counts a a full-time employee.
5. 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.
6. Add Steps #4 and #5 for your total full-time equivalent employees.