FTE Rate

This is the full-time equivalent rate. The FTE rate is calculated using the employee's total labor hours (entered on any timesheet, which falls within a pay cycle, in which the last day of the month falls) and the sum total is equal to or greater than 130 hours.

How to calculate the FTE Rate per month using the Earnings History Report:

  1. Only the earning codes which have Track Labor Hours checked are used in the calculation (Maintain>Payroll>Earning Codes). The system is able to track the employee labor hours entered on any timesheet, by using a document date which falls within a calender month.
  2. Set up the Earnings History report as follows, using Reports>Payroll>History>Earnings:
    1. On the Setup Tab, select the default report <Summary FTE by Employee>. Note that if you modify the report dates or columns, you will have to enter a new report name.
  3. When you run this report with this setup, the report will display the FTE Year, FTE Month Name, FTE Month Number, every employee, and the values for Full-Time Employee, Part-Time Hours, Full-Time Equivalents, and Total FTE using the Current Transaction Dates entered. The Full-Time Employee rate of 1.00 displays or the actual calculated Part-Time Hours and Full-Time Equivalents rate displays for a part-time employee, such as 0.34.

How is the FTE Rate calculated in the system for Aatrix®?

  1. Only the earning codes which have Track Labor Hours checked are used in the calculation (Maintain>Payroll>Earning Codes).
  2. And the last day of the month is used. (Hence the Earning History report - FTE Rate column and the Aatrix FTE Employee Count are using the last day of the month for each month.)
  3. Then the system looks for payroll checks, where the Pay Period Begin Date is less than or equal to the end of month date and Pay Period End Date is greater than or equal to the end of month date.

    If a check is found that fits, the system determines the pay cycle to determine how to calculate:

    • Semi-monthly annualizes the hours (multiplies by 24) and divides by 52 weeks and divides that number of hours by 40 hours to get the rate.
    • Bi-weekly divides the hours by 2 and divides that number of hours by 40 hours to get the rate.
    • Monthly divides the hours by 4 and divides that number of hours by 40 hours to get the rate.
    • Weekly divides the number of hours by 40 hours to get the rate.
  4. Finally, if the rate is 0.75 or greater, than the FTE rate is set to 1.00, otherwise it uses the actual calculated rate, such as, 0.34.
  5. If Issue Electronic Form 1095 box is checked and the employee's preferred Email address is entered on the Maintain>Payroll>Employee Information - W-2 Tab - Electronic Employee W-2/1095 field, Aatrix® is able to issue employee's their 1095-C form electronically.