Determining Gross Pay
For Hourly Employees- multiply the number of hours worked in the pay period
by the hourly pay rate
Example: Andy worked 36 hours, earns a rate of $20.00/hour
36 hours X $20.00 = Gross Pay of $720.00
For Salary Employees
Take that employees Yearly Salary, and divide it by the number of pay periods in a year
Employees paid monthly: Annual Salary / 12 months in one year
Example: Jeff earns $38,000 per year and is paid monthly
$38,000 / 12 months = $3166.67 per month
Employees paid weekly: Annual Salary / 52 weeks in one year
Example: Rae earns $41,000 per year and is paid weekly
$41,000 / 52 weeks = $788.46 per week
Employees paid Bi-Monthly: Twice a month, 12 months = 24 Pay Periods
Annual Salary / 24 pay periods in one year
Example: Sharon earns $45,000 per year, and is paid Bi Monthly
$45,000 / 24 pay periods = $1,875.00 per Bi Monthly Pay Period
Employees paid Bi- Weekly: 52 weeks in 1 year, paid every 2 weeks: 26 periods
Annual Salary / 26 pay periods in one year
Example: Christine earns $27,500 per year, and is paid Bi Weekly
$27,500 / 26 pay periods = $1,057.69 per Bi Weekly Pay Period
Gross Pay – Paycheck Deductions = Net Pay
Net Pay = Paycheck Amount