How to Calculate Annual Salary
Determine if you are a wage earner., Find out your hourly salary., Multiply to calculate your annual salary if you work a fixed number of hours per week., Average your weekly number of hours if you work a different amount each week., Add in overtime...
Step-by-Step Guide
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Step 1: Determine if you are a wage earner.
A wage earner is paid by the hour.
If you receive a pay rate per hour multiplied by the number of hours worked per week, then you are a wage earner.
Another term for this is a non-exempt employee.
Your paycheck may vary from week to week depending on the number of hours you work.
If you work the same number of hours each week but you are still paid by the hour, then your paycheck may be the same each week, but you are still considered a wage earner., If you are not sure how much you earn per hour, ask your supervisor or someone in human resources.
Alternately, calculate the information from your pay stub.
Locate the total gross pay on your pay stub.
Gross pay is your total salary before deductions for taxes and benefits.
Divide that amount by the number of hours you worked in that pay period.
For example, suppose your gross pay was $190 for a week in which you worked 10 hours.
Calculate $190 / 10 = $19.
Your hourly salary is $19 per hour. , Multiply your hourly salary by the number of hours you work per week to calculate your weekly salary.
Multiply this figure by 52, the number of weeks per year, to work out your annual salary.For instance, if you work 40 hours per week and you earn $19 per hour, calculate your weekly salary by multiplying 40 x $19 = $760.
Then calculate your annual salary by multiplying $760 x 52 = $39,520 , If you work a different number of hours each week, keep track of your weekly hours for one month.
Then find the average number of hours per week you worked, and multiply to find your annual salary.
For example, suppose in one month you worked 30 hours the first week, 25 hours the second week, 35 hours the third week and 40 hours the fourth week.
Find the average weekly hours with the equation (30 + 25 + 35 + 40) / 4 =
32.5.
If you earn $19 per hour, then calculate your annual salary with the equation (32.5 x $19) x 52 = $32,110.
Keep track of your weekly hours with spreadsheet software or a time-tracking app.
Some time-tracking apps are marketed to managers who have to keep track of hours for multiple employees.
But individuals can also use them to manage their productivity., An employer must pay you overtime if you work more than 40 hours per week.
The rate is one and a half times your regular rate of pay.
Keep track of your regular and overtime hours each week for a period of four weeks.
Calculate the average number of regular and overtime hours and work out your weekly and annual regular and overtime pay.
Add these together to determine your annual salary.Suppose in a four week period, you work 50 hours, 45 hours, 42 hours and 47 hours.
If anything over 40 hours is overtime, then your weekly overtime is 10 hours, 5 hours, 2 hours and 7 hours.
Calculate your average weekly overtime hours with the equation (10 + 5 + 2 + 7) / 4 =
6.
If you earn $19 per hour, then calculate your overtime rate with the equation $19 x
1.5 = $28.5 Calculate your average regular weekly salary with the equation $19 x 40 = $760.
Calculate your average weekly overtime pay with the equation $28.5 x 6 = $171.
Add these two totals to get your total weekly salary $760 + $171 = $931.
Multiply to find your annual salary with the equation $931 x 52 = $48,412. , If you are paid for vacation or sick time, then you do not need to adjust any of your calculations.
However, if you do not get paid for these absences, then this changes the number of weeks per year for which you get paid.
Suppose, for example, that you take 2 weeks of unpaid vacation time per year.
Then your work year is only 50 weeks instead of
52.
Use the adjusted number of weeks per year to calculate your annual salary.
To get an exact number, subtract hours for days each year when you don't work (holidays, vacation days).
These should only be subtracted if they are unpaid.
For example, if you only missed two days per year, you would subtract $19 x 8 hours per days x 2 days, or $304, from your annual salary. -
Step 2: Find out your hourly salary.
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Step 3: Multiply to calculate your annual salary if you work a fixed number of hours per week.
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Step 4: Average your weekly number of hours if you work a different amount each week.
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Step 5: Add in overtime payments if applicable.
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Step 6: Adjust for sick time
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Step 7: vacation or a leave of absence.
Detailed Guide
A wage earner is paid by the hour.
If you receive a pay rate per hour multiplied by the number of hours worked per week, then you are a wage earner.
Another term for this is a non-exempt employee.
Your paycheck may vary from week to week depending on the number of hours you work.
If you work the same number of hours each week but you are still paid by the hour, then your paycheck may be the same each week, but you are still considered a wage earner., If you are not sure how much you earn per hour, ask your supervisor or someone in human resources.
Alternately, calculate the information from your pay stub.
Locate the total gross pay on your pay stub.
Gross pay is your total salary before deductions for taxes and benefits.
Divide that amount by the number of hours you worked in that pay period.
For example, suppose your gross pay was $190 for a week in which you worked 10 hours.
Calculate $190 / 10 = $19.
Your hourly salary is $19 per hour. , Multiply your hourly salary by the number of hours you work per week to calculate your weekly salary.
Multiply this figure by 52, the number of weeks per year, to work out your annual salary.For instance, if you work 40 hours per week and you earn $19 per hour, calculate your weekly salary by multiplying 40 x $19 = $760.
Then calculate your annual salary by multiplying $760 x 52 = $39,520 , If you work a different number of hours each week, keep track of your weekly hours for one month.
Then find the average number of hours per week you worked, and multiply to find your annual salary.
For example, suppose in one month you worked 30 hours the first week, 25 hours the second week, 35 hours the third week and 40 hours the fourth week.
Find the average weekly hours with the equation (30 + 25 + 35 + 40) / 4 =
32.5.
If you earn $19 per hour, then calculate your annual salary with the equation (32.5 x $19) x 52 = $32,110.
Keep track of your weekly hours with spreadsheet software or a time-tracking app.
Some time-tracking apps are marketed to managers who have to keep track of hours for multiple employees.
But individuals can also use them to manage their productivity., An employer must pay you overtime if you work more than 40 hours per week.
The rate is one and a half times your regular rate of pay.
Keep track of your regular and overtime hours each week for a period of four weeks.
Calculate the average number of regular and overtime hours and work out your weekly and annual regular and overtime pay.
Add these together to determine your annual salary.Suppose in a four week period, you work 50 hours, 45 hours, 42 hours and 47 hours.
If anything over 40 hours is overtime, then your weekly overtime is 10 hours, 5 hours, 2 hours and 7 hours.
Calculate your average weekly overtime hours with the equation (10 + 5 + 2 + 7) / 4 =
6.
If you earn $19 per hour, then calculate your overtime rate with the equation $19 x
1.5 = $28.5 Calculate your average regular weekly salary with the equation $19 x 40 = $760.
Calculate your average weekly overtime pay with the equation $28.5 x 6 = $171.
Add these two totals to get your total weekly salary $760 + $171 = $931.
Multiply to find your annual salary with the equation $931 x 52 = $48,412. , If you are paid for vacation or sick time, then you do not need to adjust any of your calculations.
However, if you do not get paid for these absences, then this changes the number of weeks per year for which you get paid.
Suppose, for example, that you take 2 weeks of unpaid vacation time per year.
Then your work year is only 50 weeks instead of
52.
Use the adjusted number of weeks per year to calculate your annual salary.
To get an exact number, subtract hours for days each year when you don't work (holidays, vacation days).
These should only be subtracted if they are unpaid.
For example, if you only missed two days per year, you would subtract $19 x 8 hours per days x 2 days, or $304, from your annual salary.
About the Author
Evelyn Brown
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