Many employers place people on salary where they get a flat rate per year that is divided into paychecks, but some get paid by the hour. If you are an hourly employee, a few calculations can help you determine your salary wage.
Things You'll Need
Determine the amount of money you make per hour. This is usually listed on your paycheck.
Determine the amount of hours you work per week. This can also be found on your paycheck. A typical work week is considered 40 hours.
Multiply the amount of hours per week by your hourly wage. For example, you earn $20 per hour times 40 hours per week. This yields a weekly wage of $800.
Multiply your weekly wage times the number of weeks you work per year. There are 52 weeks in a year, but be sure to take into account vacation days and sick time. If you are not paid for those days, then you must subtract them for your total. For the example, assume you took a two-week vacation and missed one week due to illness. This would give you 49 working weeks. So the equation would read as follows:
weeks worked (49) x weekly wage ($800) = yearly salary ($39,200)
Tips & Warnings
- If you have a job where you work a lot of overtime be sure to figure that amount of money into the yearly salary as well. For example, someone who worked 60 hours a week and got overtime after 40 hours, the equation would read:
- [Base Rate x 40 = Base Weekly Wage] + [Overtime Rate x 20 = Overtime Weekly Wage] = Weekly Wage
- Multiply that weekly wage times the number of weeks worked per year to get the yearly salary.
- Also, make sure to perform this calculation based on your gross salary and not your net. When people talk about how much money they make per year it is the gross amount. The gross amount is the amount of money they earn before taxes, Medicare, Social Security and other deductions are removed.
- Photo Credit money money image by Valentin Mosichev from Fotolia.com
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