Which of the following individuals, if employed by the same small business, would qualify the employer for the Full Time Equivalent (FTE) employee requirement?

In the context of determining Full Time Equivalent (FTE) employees for small businesses, the key consideration is whether the individual is considered an employee under labor laws. An employee typically has a formal relationship with the employer in which certain obligations, such as wages and benefits, are established.

A friend of the owner, if employed by the business, would meet the criteria of a traditional employee. This means that the business would need to report their hours worked and pay them accordingly as part of the overall workforce, contributing to the FTE calculation. Since friends can still operate as employees and have a defined role, they would inherently fulfill the requirement.

In contrast, other options do not usually count towards FTE in the same formal capacity. A part-time seasonal worker may not consistently meet the hour requirements throughout the year, while freelance contractors operate as independent entities and are not classified as employees. Volunteer employees, on the other hand, typically do not receive compensation for their work and also do not count towards FTE calculations, which require employees who receive wages. This makes the friend of the owner the only individual listed who would qualify the employer for the FTE requirement consistently.