How to Calculate Hourly for Gross Amount

Unlike salaried employees who are typically paid a set wage each pay date, hourly employees are paid based on how many hours they work in a given pay period. As an hourly employee, your gross wages (your pay before deductions) may fluctuate each pay date because you may not work the same amount of hours each pay period. Your taxes may also fluctuate because they are dependent on how much you earn. Hourly employees are typically paid either on a weekly or biweekly pay schedule.

Instructions

1. Refer to your weekly time sheet or time card to determine the number of hours you worked for the week.

2. Tally your regular and overtime hours plus any benefit days such as vacation or sick time you took. For example, say you worked 8 a.m. to 5 p.m. with one hour unpaid lunch, Monday through Friday, your total hours for the week are 40 regular hours with no overtime.

   For a biweekly pay date, calculate based on your time card hours for two weeks. For example, if you worked 40 hours each week, multiply 40 hours by 2 weeks, which is 80 regular hours.

3. Multiply the total hours worked by your regular pay rate. Using the weekly example in Step 2, say your pay rate is $10 per hours, calculate as follows: 40 hours x $10 = $400 gross pay.

   Using the biweekly example in Step 2, and say your pay is $10 per hour, calculate as follows: 80 hours x $10 = $800 gross pay.

Tips & Warnings

• If you have overtime hours, pay the overtime hours for each week at time and a half (your regular rate x 1.5) to arrive at your gross overtime wages.

References

• Office of Payroll Administration: Pay Rate Calculator