In order for your company to be eligible for many programs and benefits offered by the Small Business Administration, you need to know the number of employees you have in your company. These programs include SBA support and loan services. When you are asked for the number of employees, it refers to the average number of individuals employed by the company in a year’s time. You need to make a few simple calculations to find the total.
Gather up payroll information for the past year. If you use a payroll service, you will need to request the information from that company.
Add up the total number of employees paid during each pay period. For example, if you paid 10 employees each pay period and you had 12 pay periods, your total number paid over all periods would be 120. You can add the number of employees that work each month if you prefer. Be sure to count each person whether they worked the whole month or not.
Divide the total number of employees by the number of pay periods you had during the year. Be sure you count any months that you did not pay employees or the months that you had no employees. If you counted the number of employees that worked each month, you will need to divide the number by 12.
Round the number you computed to the nearest whole number to get the total number of employees.
Recalculate this number every year to stay in compliance with the Small Business Administration.
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