How Many Hours Is Full Time: Hours, Benefits, and Pay

Full-time employment offers many benefits to workers, including paid time off, sick leave, retirement plans, health insurance, and more. That’s why it’s important to know how many hours full-time is and understand if you qualify for all the perks.

In this article, you’ll learn about the thresholds associated with full-time employment, the differences between full-time and part-time work, the maximum hours an employee can work per month, and more. We’ll also explore the benefits of full-time employment, legal definitions, and the importance of accurate hour tracking.

Key Takeaways

• A full-time position typically requires between 32 and 40 hours of work per week.
• The FLSA doesn’t determine how many hours are full-time, so that’s often left to employers to determine for themselves.
• The IRS threshold for a full-time position is 30 hours per week or 130 hours per month for the Affordable Care Act.
• Full-time employees often get more employer-sponsored benefits than part-time workers, and they have more secure jobs with increased growth opportunities.
• Both full-time and part-time employees can be eligible for overtime pay if they work more than 40 hours per week.

How Many Hours Is Considered Full-Time?

The Department of Labor and the Fair Labor Standards Act do not specify how many hours are considered full-time. While a traditional 40-hour workweek is typically associated with full-time employment, that is not a universal norm. Employers are often left to their own devices to determine how many hours they consider to be full-time.

In practice, a work schedule that consists of anywhere between 32 and 40 hours per week is usually considered full-time. This amounts to about 160–180 work hours per month for full-time employees in the United States.

However, while the FLSA doesn’t regulate full-time, the IRS does for the purposes of the Affordable Care Act (ACA). As a result, the IRS defines a full-time employee as someone who works at least 30 hours per week or 130 hours per month. This distinction is essential in determining whether employers need to provide health insurance coverage.

Full-Time vs. Part-Time Work

The difference between full-time and part-time work isn’t just in the number of hours, but also in the benefits that employees receive.

Full-time employees consistently work more (usually 32–40 hours per week) while receiving various employer-sponsored benefits. These benefits include health insurance, retirement plans, paid time off, and more. Additionally, they usually have better job security and more opportunities for career growth.

On the flip side, part-time workers usually work 30 hours per week or less. They have more flexibility in their employment, which is great for students, parents, and professionals with other types of commitments. The downside is that there’s generally less job security, fewer opportunities for career progress, and a lack of benefits.

Both full-time and part-time employees are eligible for overtime pay, as long as they are non-exempt and have worked more than 40 hours per week.

Here is a table that summarizes all the differences between these two types of employees:

What’s the Maximum Hours a Month an Employee Can Work?

There is no federal law that governs the maximum hours a month an employee can work. The FLSA does not put a cap on it, as long as they are 16 years of age or older.

However, the FLSA mandates overtime pay. Overtime eligibility primarily depends on overtime classification, and only non-exempt employees (part-time and full-time) receive it after working more than 40 hours in a week. The rate for overtime pay is at least one and a half times the regular hourly rate, though state laws can increase the rate further.

Additionally, while there’s no federal limit to the maximum hours an employee can work in a month, some states may have their own regulations in place. For example, many of them mandate that workers get at least one day off a week or a 10-minute break for every hour worked, if working four days in a row.

How Full-Time Status Affects Pay, Benefits, and Taxes

Let’s see what the biggest pros of being a full-time W-2 employee are and how that status affects their salary and taxes.

#1. Eligibility for Overtime Pay

Overtime pay is mandated by the FLSA for both full-time and part-time employees, as long as they are classified as non-exempt. It’s a common misconception that only full-time employees are entitled to overtime pay. Eligible employees will receive this type of compensation if they work more than 40 hours a week.

A minimum rate for overtime pay is one and a half times the regular rate for every hour over 40 in a workweek. Some state laws can impose additional policies, such as higher rates or daily overtime rules.

#2. Access to Employer-Provided Benefits

One of the biggest advantages of being a full-time employee is having access to a suite of employer-sponsored benefits. Many employers offer a range of benefits to attract and retain talent.

Common benefits include:

• Health insurance. This is one of the most valued benefits, due to the high costs of healthcare in the U.S. Under the Affordable Care Act, employers with 50 or more full-time employees must offer health coverage.
• Retirement plans. Employers often match employees’ contributions to plans like 401(k), helping them save for the future.
• Paid time off (PTO). PTO allows employees to get paid for sick leave, vacation days, and various personal days off.

#3. Tax Implications of Full-Time Status

Employers are required to withhold federal income tax, Social Security, and Medicare taxes from employee paychecks for both full-time and part-time workers. The amount that needs to be withheld is based on the information in the Form W-4 provided by the employee.

Employees also need to pay their share of tax at the end of the year, which is based on their total income. As a result, full-time employees usually have to pay more than part-time workers, due to higher income.

The biggest difference regarding tax implications is when comparing 1099 vs. W-2 workers. Since 1099 workers are independent contractors, they aren’t entitled to tax withholding, making this a strictly employee benefit.

#4. Benefits Beyond Salary

Beyond a salary and employer-provided benefits, full-time employment offers additional perks that contribute to career progress and work-life balance.

For starters, you’ll get plenty of opportunities to improve your skills and develop professionally. Additionally, full-time employees are often integral parts of the company, so they receive internal promotions and advance to more lucrative and challenging roles.

Legal and Employer-Specific Definitions of Full-Time Hours

As we’ve already mentioned, the Fair Labor Standards Act does not define full-time and part-time work, allowing employers to set their own policies. This allows them to detail various aspects, such as how many hours a day full-time employees need to work.

This allows companies to establish their own rules and thresholds, which are often detailed in written policies and employee handbooks. For example, one employer may set 35 hours as a full-time week, while another may set 40. That’s why it’s essential for employees to familiarize themselves with company rules to understand their rights and benefits.

However, there are still instances in which employers are limited when determining how many hours are full-time. For the purposes of the Affordable Care Act (ACA), the IRS clearly states that any employee who has worked at least 30 hours per week or 130 hours per month is a full-time employee.

This distinction is essential for employers who have 50 or more full-time employees, as they are legally required to provide health insurance to their workforce.

Lastly, some states have specific labor laws for full-time employees that define thresholds for a full-time status. For example, the California Department of Industrial Relations defines a full-time employee as one who works 40 hours per week, as specified in the California Code of Regulations, Title 8, Section 11040.

The Importance of Tracking Work Hours and Staying Compliant

Accurate timekeeping is essential in ensuring regulatory compliance and maintaining fair employment practices. This is especially important for distinguishing between full-time and part-time employees.

Tracked work hours are a critical component for calculating payroll and taxes. They are primarily used to calculate employee earnings, but are also critical in determining overtime hours. Failure to ensure compliance can result in legal disputes and severe penalties.

That’s why there are various software solutions for automated time tracking. Platforms like Clockify, Toggl Track, and Connecteam enable everything from creating simple spreadsheets to performing sophisticated tracking.

On the other hand, Paystub.org can help your business with its requirements for pay stubs and other documentation. Our pay stub generator features a built-in calculator you can use to input work hours and rates and get accurate income and deductions. That way, you’ll effortlessly create professional pay stubs for your employees and for your record-keeping efforts.

Additionally, you can use our Form W-2 generator to prepare year-end tax documentation for your employees.

On top of that, we also offer an invoice and a Form 1099 generator. Both of these can help small businesses and independent contractors significantly reduce the time and effort required to create and maintain business documentation.

Final Thoughts

As you can see, there is no definitive answer to the “how many hours is full-time” question. That is often up to employers to determine, which is why some consider 32 hours to be full-time work, while others set the bar at 40 hours per week.

Still, while there’s no federal law that classifies full-time and part-time work, some state laws may, and so does the IRS, for the purpose of the ACA. More than that, both types of employees can be eligible for overtime pay, which makes accurate hour tracking and documenting all the more important.

How Many Hours is Full-Time FAQ

#1. Can you work 30 hours and be considered full-time?

Yes, you can work 30 hours a week and be considered a full-time employee. The Fair Labor Standards Act (FLSA) leaves it to employers to determine how many hours an employee needs to work to be considered full-time. The IRS threshold for full-time employees is 30 hours per week.

#2. How can employers verify full-time hours for payroll?

Employers can verify full-time hours for payroll by using tracking systems. These can be anything from manual timesheets (which is an outdated and rarely used method for tracking hours) to time tracking software.

#3. What is the minimum number of hours for a full-time job?

There is no minimum number of hours for a full-time job. Employers typically set their own minimums, which usually vary between 30 and 40 hours per week. For the purposes of the Affordable Care Act (ACA), the minimum number of hours for a full-time job is 30.