### Question
How does Determination of Tax Liability define full-time equivalent employees?


### Answer
Under *26 U.S.C. § 45R*, **full-time equivalent employees** is defined as:

> 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**

