How to Work out Gross Pay
Add up your hours for the desired time period., Factor in any overtime or double-time hours., Multiply your hours by your hourly pay rate., Add on any tips, commissions, or bonuses during the chosen time period., Compare your calculations to your...
Step-by-Step Guide
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Step 1: Add up your hours for the desired time period.
You can figure out gross pay for the year, month, two weeks, week, even day if you desire, if you know how many hours you worked during that same period of time.
As an example, let’s say you worked 25 hours last week for a part time job — in fact, you’ve worked the same 25 hours per week for the past year. -
Step 2: Factor in any overtime or double-time hours.
If you work beyond your standard number of hours for a week, or work on a weekend, holiday, or other non-standard time period, you may receive additional gross pay per hour.
Overtime is often calculated at a factor of
1.5 times, meaning 1 hour of overtime is paid the same as
1.5 hours of normal time.
Double-time is, not surprisingly, multiplied by two.
Talk to your employer about the rates for your job.
While part-time workers don’t usually get much overtime, let’s assume that five of your hours last week (and each week for the last year) have been “double-time.” Because you were paid double for five of your 25 hours last week, it was the same as working 30 hours at regular pay (+ = 30). , Consult your pay stub or your employer if you do not know your hourly pay rate.
In our example, let’s make your pay rate $13.50 per hour.
Therefore, 30 x $13.50 = $405.
Over the past year (52 weeks), the total would be 52 x $405 = $21,060.
If math is not your strong suit, or you have a lot of overtime, etc,. to factor in, there are easy-to-use gross pay calculators available online., Gross pay includes everything you earn for your work and subtracts nothing.
If commission is a regular part of your earnings (if you are in sales, for instance), you may want to try tracking your commissions for a month or a few weeks, then look to see if there are any trends.
This can help you if you are trying to plan for the future or earn a specific amount of gross pay.
Let’s say that you earned a $45 productivity bonus last week, and have been consistently productive and earned that same $45 each week for the past year.
Your new totals, then, are $405 + $45 = $450 weekly, and $405 x 52 = $23,400 yearly.
In our example, therefore, your weekly gross pay is $450; yearly, it’s $23,400.
This is what you earn during those time periods before any taxes or other deductions are taken out. , If you are a legal hourly employee in the U.S., you must receive a pay stub (paper or electronic) with your payments, be it weekly, bi-weekly, or other.
This will show your gross pay for the period.
Each year at tax time, you will also receive a W2 form from your employer to use when filing your federal, state, and local taxes.
This shows your total gross pay at that job for the past calendar year. -
Step 3: Multiply your hours by your hourly pay rate.
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Step 4: Add on any tips
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Step 5: commissions
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Step 6: or bonuses during the chosen time period.
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Step 7: Compare your calculations to your pay documents.
Detailed Guide
You can figure out gross pay for the year, month, two weeks, week, even day if you desire, if you know how many hours you worked during that same period of time.
As an example, let’s say you worked 25 hours last week for a part time job — in fact, you’ve worked the same 25 hours per week for the past year.
If you work beyond your standard number of hours for a week, or work on a weekend, holiday, or other non-standard time period, you may receive additional gross pay per hour.
Overtime is often calculated at a factor of
1.5 times, meaning 1 hour of overtime is paid the same as
1.5 hours of normal time.
Double-time is, not surprisingly, multiplied by two.
Talk to your employer about the rates for your job.
While part-time workers don’t usually get much overtime, let’s assume that five of your hours last week (and each week for the last year) have been “double-time.” Because you were paid double for five of your 25 hours last week, it was the same as working 30 hours at regular pay (+ = 30). , Consult your pay stub or your employer if you do not know your hourly pay rate.
In our example, let’s make your pay rate $13.50 per hour.
Therefore, 30 x $13.50 = $405.
Over the past year (52 weeks), the total would be 52 x $405 = $21,060.
If math is not your strong suit, or you have a lot of overtime, etc,. to factor in, there are easy-to-use gross pay calculators available online., Gross pay includes everything you earn for your work and subtracts nothing.
If commission is a regular part of your earnings (if you are in sales, for instance), you may want to try tracking your commissions for a month or a few weeks, then look to see if there are any trends.
This can help you if you are trying to plan for the future or earn a specific amount of gross pay.
Let’s say that you earned a $45 productivity bonus last week, and have been consistently productive and earned that same $45 each week for the past year.
Your new totals, then, are $405 + $45 = $450 weekly, and $405 x 52 = $23,400 yearly.
In our example, therefore, your weekly gross pay is $450; yearly, it’s $23,400.
This is what you earn during those time periods before any taxes or other deductions are taken out. , If you are a legal hourly employee in the U.S., you must receive a pay stub (paper or electronic) with your payments, be it weekly, bi-weekly, or other.
This will show your gross pay for the period.
Each year at tax time, you will also receive a W2 form from your employer to use when filing your federal, state, and local taxes.
This shows your total gross pay at that job for the past calendar year.
About the Author
Joseph Ross
Writer and educator with a focus on practical lifestyle knowledge.
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