How do you calculate gross annual income?
Quick Answer
Locate the gross pay under the "Total Earnings" or "Gross Pay" section of a paycheck and multiply the amount by 12, 24, 26 or 52, according to Cynthia Measom for the Houston Chronicle. Multiply by 12 if payment is once a month or 24 for a pay frequency that is twice a month. Multiply by 26 if the payment cycle is every two weeks or 52 for weekly paychecks.
Continue Reading
Full Answer
Measom mentions that annual gross income is a person's yearly salary before deductions are made. Avoid using the "Net Pay" portion of the paycheck because this includes deductions from taxes and medical insurance. How often a person gets paid and the amount determines annual gross income. One example is a $1,200 weekly pay being multiplied by 52 to get an annual gross income of $62,400.
According to Measom, a distinction must be made between being paid twice a month and every two weeks, and confusing the two results in a wrong calculation. For example, being paid twice a month means being paid on scheduled payment days that may include the 1st and 15th of every month, while being paid on a bi-weekly basis means payment every 14 days. Payment every two weeks may also mean receiving payment three times a month at two times during the year.
Learn more about SalariesRelated Questions
-
Q:
How much money do prosecutors make?
A: The Houston Chronicle states that in 2010, entry-level prosecutors made a median salary of $50,000 a year. Prosecutors with 11 to 15 years of experience ma... Full Answer >Filed Under: -
Q:
How much do radiologists make per year?
A: As of 2012, according to a survey by Medscape, radiologists of all experience levels earn an average salary of $349,000 per year, notes Forest Time for the... Full Answer >Filed Under: -
Q:
When applying for a mortgage, do they look at net or gross income?
A: In evaluating a borrower's application, mortgage lenders use gross income to calculate debt-to-income ratios, according to Investopedia. The general rule o... Full Answer >Filed Under: -
Q:
How do you define gross income?
A: In the simplest terms, gross income refers to all income received by a person or corporation in a set period of time; for individuals, this includes paymen... Full Answer >Filed Under:
You May Also Like
-
Q:
What are the average salaries for some top government jobs?
-
Q:
What are some high-paying trucking companies?
-
Q:
How much are security guards paid?
-
Q:
What is the starting salary for a pharmacist at Walgreens?
-
Q:
What is the pay for a dental assistant?
-
Q:
How do teachers make money on Teachers Pay Teachers?
