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Headcount - Are employees who terminate at the end of the month included as reportable headcount at month end

If an employee terminates at the end of the month, do you include the employee in the headcount for the month or as a termination for the month? Thanks!


Topic Expert
Wayne Spivak
Title: President & CFO
LinkedIn Profile
(President & CFO, |

Yes. If an employee is an employee for 1 day, they are headcount.

They were part of salary expense for that month. Whether you choose (which I think is fudging the numbers, an explanatory note is more forthcoming) to change that person into a FTE is a way to handle it (assuming they didn't leave on the last day of the month).

Jon Placa
Title: Director of Finance and Operations
Company: NarrativeDx
LinkedIn Profile
(Director of Finance and Operations, NarrativeDx) |

Yes, especially since you've already paid their salaries throughout the termination month.

A footnote would assist in describing the headcount reduction.

Similarly, if an employee was terminated on the first of the month, a footnote would help explain the full benefit expenses incurred (despite a reduction in headcount)


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