What does hourly to salary mean?
Hourly to salary is a conversion that determines how much an employee's salary would be if they were paid on an hourly basis. To figure this out, multiply the number of hours an employee works in a year by their hourly wage. For example, if an individual works 2,080 hours per year (the average amount of hours most salaried employees work in a year based on a 40-hour workweek) and is paid $25 per hour, their annual income is $52,000.
How do you calculate hourly to salary?
To convert hourly to salary wages, simply multiply the number of hours worked per week (for example, 40) by the hourly wage (for example, $16/hr). Then divide that figure by 52 (the number of weeks in a year).
$16 x 40 x 52 = $33,280
In this scenario, the annual compensation is $33,280.
What are the benefits of working hourly to salary?
The classification of hourly to salary employees can vary, ranging from those operating under a full-time contract with benefits to part-time staff receiving limited benefits. Hourly compensation is determined solely on the hours worked and requires the submission of a timesheet or timekeeping through clocking in and out. Employers must compensate employees with overtime pay if their working hours exceed 40 hours per week. Hourly to salary employees also receive holiday pay at a rate of time and a half. Those who are not full-time have the advantage of controlling their schedules, whether it be opting for hourly compensation instead of salary, or choosing to work for various clients or companies.
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