How to Calculate the Gross Annual Income From Pay Stubs

Pay stubs typically list salary or wage information for the pay period. Using specific information from the pay stub, including the gross wages or gross hourly wage figure and information about the length of the pay period, you can manually calculate an employee's gross annual income.

Instructions

1. Determine the gross wages payment from the pay stub. The gross wages amount does not include any withholding for taxes, Social Security or voluntary contributions.

2. Determine the pay period from the pay stub. Typically companies issue paychecks every week, bi-weekly or monthly.

3. Multiply the gross wages amount by 12 for salaried employees paid monthly. For example, assume a salaried employee receives a gross wage of $2,000 monthly. $2,000 x 12 = $24,000. This figure represents the gross annual income for the employee.

4. Multiply the gross wages amount by 26 for salaried employees paid bi-weekly. For example, assume a salaried employee receives a gross wage of $1,000 every two weeks. $1,000 x 26 = $26,000. This figure represents the gross annual income for the employee.

5. Multiply the gross wages amount by 52 for salaried employees paid weekly. For example, assume a salaried employee receives a gross wage of $1,000 every week. $1,000 x 52 = $52,000. This figure represents the gross annual income for the employee.

6. Multiply the hourly gross wage by 2080 for hourly employees. This assumes the employee works an average of 40 hours per week, 52 weeks per year. If the employee works less, adjust this multiplier by the estimate of the true annual hours worked per year. For example, assume an employee earns $10 per hour. $10 x 2,080 = $20,800. This figure represents the gross annual income for the employee.

References

• "Human Resources Management"; Robert Mathis et al; 2010