full-time equivalent employees
Defined in 2 places of the United States Code.
The term “full-time equivalent employees” means a number of employees equal to the number determined by dividing—
(i) the total number of hours of service for which wages were paid by the employer to employees during the taxable year, by
(ii) 2,080.
Source
- 2026–present26 U.S.C. § 45RInternal Revenue Code · Employee health insurance expenses of small employers · for purposes of this section
The term “full-time equivalent employees” means a number of employees equal to the number determined by dividing—
(i) the total number of hours of service for which wages were paid by the employer to employees during the taxable year, by
(ii) 2,080.
Such number shall be rounded to the next lowest whole number if not otherwise a whole number.
Source
- 2010–202626 U.S.C. § 45RInternal Revenue Code · Employee health insurance expenses of small employers · for purposes of this section
The term “full-time equivalent employees” means, with respect to any month, the sum of—
(A) the number of full-time employees (as defined in section 4980H(c)(4)) for the month, plus
(B) the number of employees determined (under rules similar to the rules of section 4980H(c)(2)(E)) by dividing the aggregate number of hours of service of employees who are not full-time employees for the month by 120.
Source
- 2026–present26 U.S.C. § 6039KInternal Revenue Code · Returns with respect to qualified opportunity funds and qualified rural opportunity funds · in this section