under paragraph (2) shall be increased by 50 percent. For taxpayers who first commence doing business during the taxable year, the number of full-time employees, contracted employees, and foreign full-time employees for the immediately preceding prior taxable year shall be zero. (B) Definitions For purposes of this paragraph— (i) Annual full-time equivalent The term annual full-time equivalent means— (I) in the case of a full-time employee paid hourly qualified wages, the total number of hours worked for the taxpayer by the employee, not to exceed 2,000 hours per employee, divided by 2,000, and (II) in the case of a salaried full-time employee, the total number of weeks worked for the taxpayer by the employee divided by 52. (ii) Contracted full-time employee The term contracted full-time employee means an individual engaged by the taxpayer to provide a specific set of services established pursuant to the terms and conditions of a written employment contract that delineates the length of employment, the salary and bonuses (if any) to be paid, and the benefits that accrue to that individual. (iii) Foreign full-time employee The term foreign full-time employee means a full-time employee of the taxpayer that is employed at a location other than the United States. (iv) Full-time employee The term full-time employee means an employee of the taxpayer that either— (I) is paid compensation by the taxpayer for services of not less than an average of 35 hours per week, or (II) is a salaried employee of the taxpayer and is paid compensation during the taxable year for full-time employment. (5) Controlled groups For purposes of this subsection, all persons treated as a single employer under subsection (b), (c), (m) or (o) of section 414 shall be treated as one person. (6) Reports The taxpayer shall furnish such reports to the Secretary with respect to compensation and such other matters as the Secretary may require. The reports required by this subsection shall be filed at such time and in such manner as may be required by