Intuit Payroll reports that salary employees may calculate annual salary by multiplying the amount of each pay check by the number of pay checks in each year. Alternatively, the number of hours worked each year may be multiplied by the hourly rate to determine annual salary.
Continue ReadingIntuit Payroll states that full-time hourly employees work 2,080 hours per year at 40 hours per week. Each year has 52 weeks. The hourly rate multiplied by the number of hours worked each week results in the weekly pay. One week of pay, multiplied by 52, provides the annual salary. If the employee takes time off from work, hours should be subtracted and a new total calculated.
As Intuit Payroll reports, part-time employees should adjust the calculation to reflect the correct number of hours worked each week. Seasonal employees or workers with intermittent schedules should add all pay checks for the year to determine salary. Salary employees may calculate their hourly rate by dividing total pay by the number of hours worked.
For example, a biweekly check of $1,000 is multiplied by 26 pay periods and results in an annual salary of $26,000. If 2,000 hours are worked each year for an hourly salary of $10, then the total salary is $20,000.
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