The hourly rate of pay is calculated by dividing the gross salary for a specific period by the number of hours worked in that same period. Gross salary is the amount earned prior to any deductions.
Continue ReadingThe same formula applies whether the salary being converted is annual, monthly, bi-monthly, or weekly. For example, if an individual receives a weekly check with a gross pay of $1,200, and he worked 40 hours that week, his hourly rate is $30.00. Similarly, an individual receiving an annual gross salary of $62,400 who works 40 hours per week, or 2,080 hours annually, also makes $30.00 per hour.
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