United States Department of Labor

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# Steps to estimate annual average number of employees

 Step 1: To calculate the annual average number of employees your establishment paid during 2023, you must calculate the total number of employees your establishment paid for all periods. Add the number of employees your establishment paid in every pay period during calendar year 2023. Count all employees that you paid at any time during the year and include full-time, part-time, temporary, seasonal, salaried, and hourly workers. Note that pay periods could be monthly, weekly, bi-weekly, etc. Example: Acme Construction paid its employees in 12 pay periods during 2023: ```Pay Period Number of Employees Paid Per Pay Period 1 30 2 0 3 35 4 37 5 37 6 40 7 43 8 42 9 37 10 35 11 30 12 +26 392 (total number of employees paid over all pay periods) ``` Step 2: Divide the total number of employees (from step 1) by the number of pay periods your establishment had in 2023. Be sure to count any pay periods when you had no (zero) employees. Example: Acme Construction had 12 pay periods and paid a total of 392 employees during these pay periods.392 divided by 12 = 32.67 Step 3: Round the answer you computed in step 2 to the next highest whole number. Write that number in the box for Section 1, question 2 on the previous page. Example: Acme would round 32.67 to 33.