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.Know More
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 Salaries
In 2011, elected officials of the United States earned salaries that ranged from $13,797 to $400,000, according to the Houston Chronicle. Salaries vary widely at the local, state and federal levels.Full Answer >
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 made a median wage of $81,500 per year.Full Answer >
In evaluating a borrower's application, mortgage lenders use gross income to calculate debt-to-income ratios, according to Investopedia. The general rule of thumb is that a borrower shouldn't have debt obligations that exceed 36 percent of monthly gross income.Full Answer >
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 payment accrued from all sources before taxes, while it includes total revenue for organizations before accounting for product sales. Gross income for people and companies comes from many sources; researchers at the Cornell University Law School Legal Information Institute maintain a list of qualifying sources, which includes gains, interest, royalties and fee-based compensation.Full Answer >