SIMPLE STEPS

Determine the total number of your
employees (not counting owners and family members):

Full-time employees:
(enter the number of employees who work at least 40 hours per week)
PLUS
Full-time equivalent of part-time
employees:
(Calculate the number of full-time equivalents by dividing the total annual hours of part-time employees by 2080.)

= total employees

If the total number of employees is fewer than 25
GO TO STEP 2

Calculate the average annual wages of employees (not counting owners and family members):

Take the total annual wages paid to
employees:

DIVIDED BY

Divide it by the number of employees from STEP 1:
(total wages / number of employees)


= average wages

If the result is less than $50,000, AND