### Question
How is the term full-time equivalent employees defined?


### Answer
The term **full-time equivalent employees** is defined in *26 U.S.C. § 45R* as the following:

> 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

#### Citation:
  - *26 U.S.C. § 45R*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter A-Determination of Tax Liability > PART IV-CREDITS AGAINST TAX > Subpart D-Business Related Credits**

