Multiply the overtime rate of pay by the weekly overtime rate. The overtime rate is one and a half times the regular rate of pay. Next, calculate the overtime rate of pay. What if you begin paying the employee the $15 per hour rate, but the employee actually works 45 hours per week?įirst, calculate the employee’s earnings for the regular hours they worked during the week.Ĥ0 hours × $15 = $600 regular weekly earnings In the example above, the employee’s annual salary was $31,200 based on a standard 40-hour workweek. But if the employee does work a lot of overtime, you might pay a lot of overtime wages. This first method is great to use if the employee does not work much overtime. In this example, the employee’s hourly rate is $15. Here is the basic salary-to-hourly formula for this method:įirst, divide the employee’s annual salary by 52 weeks (the number of weeks in a year). If a standard workweek at your business is less than 40 hours, use that number instead of 40 in the equation. With this salary-to-hourly conversion, you will calculate the hourly rate based on a standard 40-hour workweek. Both methods come with a downfall, which is explained in each section. However, don’t automatically use the first formula to avoid doing extra math. The second formula involves more calculations. The first salary to hourly formula is shorter and easier to calculate.
How to convert salary to hourlyīelow are two hourly wage calculation methods for salary employees. Regardless of your reason, we’ve got the formulas you need to convert salary to hourly wages below. Or, you might need to know how to calculate overtime for salaried employees. So, when would you need to convert a salary to hourly wages? You may want to know how an employee’s salary compares to employees who receive hourly wages. And if you want to know how to convert salary to hourly rate for employees, it’s time to whip out those calculators. Scenario 1: A project manager is getting an hourly rate of $25, while working 8 hours per day and 5 days a week.Sometimes, being an employer feels like you’re doing nonstop math. Table source: Dol Gov Example of two calculations $8.00 (large employers)/$6.50 (small employers) $7.25 (FLSA covered employers)/$5.08 (FLSA NOT covered employers) Below there is a table presenting the figure per each state: State federal government allows a nationwide minimum wage per hour of $7.25, while depending by each state’s policy employers may be requested to pay higher rates.įor instance as of January 1 2015, there were more than 25 states that started paying a level greater than the minimum mandated. Within United States, employees must be paid no less than the minimum wage as specified by the Federal and the local governments. (C) Weekly salary = HW * LHD What is minimum wage? (A) Annual salary = HW * LHD * 52 weeks in a year The second algorithm of this hourly wage calculator uses the following equations: Second calculation approach is within 2 nd tab and uses the following figures that should be given: (A) Hourly wage is the value specified by the user within GP.
Number of hours you effectively work per day īy this scenario the gross paycheck formulas applied depend on the way the normal pay rate is specified as detailed below: Standard / regular pay rate either if it is negotiated with the entity you are working for as hourly, daily, weekly, monthly or annually figure This tool allows you estimate your salary earnings by two different approaches according to your needs:įirst method can be found in 1 st tab and it requires you to provide the following variables: How does this hourly wage calculator work?