How Do You Calculate an Hourly or Daily Rate For a Salaried Employee?

by Miranda
(San Francisco)

I have an employee who will leave before his payroll period is up. How do I divide into days so as to pay him less than his regular salary?

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Calculating Hourly or Daily Rate For Salaried Employees
by: Best Business Payroll

Breaking down an employee's salary into a daily or hourly rate is achieved in the following manner:

Divide the annual salary by 52 weeks for weekly pay; divide the weekly pay by 40 hours for hourly pay.

For example, say your employee makes $20,000 per year. The weekly rate would be $384.62 ($20,000 divided by 52), and the hourly rate would be $9.62 (384.62 divided by 40). In this way, you can accurately calculate what is owed to the employee should he leave in the middle of a pay period.

Be sure to keep a written record, either in an Excel spreadsheet or other format, in case the Department of Labor audits your company. Providing this documentation should satisfy them that your employee was paid appropriately.

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Calculating salaried emp pay rate
by: Anonymous

Should we use only week days (Mon-Fri) when calculating the daily pay rate for salaried employees paid semi-monthly?

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Depends on the Number of Days Typically Worked
by: Best Business Payroll

If your employee typically works a five day work week, then yes, use the five day work week to divide salary/pay. If your employee typically works six days (or four--adjust as necessary) divide by that number of days to get the correct total.

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Calculating Daily Pay Rate
by: Anonymous

Our employees are salaried and paid semi-monthly (on the 15th and the last day of each month. Most do not have a "typical work week". They work anywhere from 5 to 7 days a week depending on the demands of the construction project and the customer. How then should we calculate a daily pay rate for them? I am at a loss!
Thank you!

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Daily Salary
by: Anonymous

Annual divided by 365

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