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Formula obtained through Enterprise Florida - December 2012
Part Time Employee Conversion Formula
How to calculate the number of full time equivalent employees and the average wage
(Example provided below)
Example: The company has 10 full time employees (working 40 hours a week) with a wage of $20 an hour. The company also has 10 part
time employees that work 20 hours each with a wage of $10 an hour.
Hours Wage
Part Time Employees Wage $10
20 hours a week for 1 employee for 52 weeks equals 1,040 hours Wage ($10) x payroll hours (10,400) of part time
x 10 employees 10,400 hours Total payroll for part time $104,000
Full Time Employees Wage $20
40 hours a week for 1 employee for 52 weeks is 2,080 hours Wage ($20) x payroll hours (20,800) of full time
x 10 employees 20,800 hours Total payroll for full time $416,000
Total hours of payroll for the company 31,200 Total payroll for the company $520,000
Take the total hours of payroll for the company, determined above, and divide it by 2,080 (standard full time hours). The answer is the
number of full time equivalent employees for the company.
31,200 ÷ 2,080 = 15 employees
To determine the average wage of employees, take the total payroll budget, determined above, and divide it by the number of full time
equivalent employees calculated above.
$520,000 ÷ 15 = $34,667 average wage