How to Calculate Paid Time Off for a Bank of Days
Many companies allow employees to bank paid time off. Employees bank time off by accruing instead of using their allotted time. You can calculate the value of this banked time by converting the employee's salary to a daily compensation figure and multiplying this daily wage by the number of banked days.
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Instructions
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Determine the annual salary for the employee. For example, assume the employee earns $45,000 per year.
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2
Divide the annual salary by 52. Continuing the same example, $45,000 / 52 = $865.38. This figure represents the employee's weekly salary.
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3
Divide the employee's weekly salary by 5. Continuing the same example, $865.38 / 5 = $173.08. This figure represents the daily salary for the employee.
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4
Determine the number of banked days accumulated by the employee. For example, assume the employee has 15 banked days.
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Multiply the employee's daily wage by the number of banked days. Continuing the same example, $173.08 x 15 = $2,596.15. This figure represents the paid time off for the employee's banked days.
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