The two main categories in which employees are paid are either through a fixed weekly or monthly salary or hourly wages. Usually, employers classify non-management positions as hourly wage roles, which means almost more than half of the organization’s employees need paycheck based on the hours they worked every week or month.
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Knowing that so many paychecks will have to be issued, the administration and accounting department hardly ever gets free because calculating self-payment or an employee’s salary might not be easy. But they can improve their efficiency in calculating hourly paychecks with the right approach and resources. In this blog, find out six amazing hourly paycheck calculators to make accounting salaries faster.
How to Calculate Hourly Pay?
Calculating your hourly pay takes a few steps.
1. Calculating the hourly rate if you are salaried
- Calculate your yearly income
Determine gross pay i.e., the amount before taxes. Multiply it by the number of paid days worked in a year. Based on the schedule for which you work i.e., two scheduled paydays per month or fortnightly, you will have to multiply the number by 24 or 26.
- Calculate the number of hours you worked in a year
8 hours (per day) x 5 days per week x 52 weeks per year = 1,950 hours worked per year.
- Calculate your hourly wage
Once you determine your yearly income and hours worked in a year, you divide the first by the later to obtain an hourly wage.
- Adjust your yearly income
If necessary, add to your annual pay sum any extra money that comes from your work. These can include tips, bonuses, benefits depending on the job, etc. Any rewards or other work-based benefits that you plan to earn will be added straight to your annual sum.
When you work overtime, do not forget to consider them.
For determining the amount for overtime hours, you will have to multiply the extra hours with the overtime rates. The amount you get from overtime will also form a part of your annual salary.
2. Calculating Hourly Rate if you are self-employed
- Keep track of hours worked
The first step is to decide what your pay period is. You can calculate your hourly rate based on an annual income or find your hourly rate for a specific job or time.
- Calculate your income
Keep an eye on your earnings. Make sure you use the same pay schedule you have chosen to work out the hours.
- Divide A by B
This will give you an hourly rate.
Check these 6 hourly paycheck calculator to calculate the hourly pay rate
Gusto is exceptionally clean and comfortable to use a paycheck calculator for freelancers and salaried employees. This software is one of the best paycheck calculators that calculate hourly paycheck, including taxes, overtime, and commissions: pay information, additional pay, Federal Tax Information, and State Tax Information.
ADP hourly paycheck calculators help salaried employees and self-employed with the calculation of hourly rates and wages. It helps in calculating all the figures from gross-to-net pay and estimates pay with many added benefits.
3. Smart Asset
It helps businesses to get better with the payroll system along with salaried employees and self-employed. Smart Asset paycheck calculator calculates hourly wages and take-home wages for your employees.
Bankrate hourly paycheck calculator helps you determine your paycheck. You need to enter the current earnings details and expenses. Then enter the working hours. Bankrate hourly paycheck calculator is one of the best calculators available for salaried employees and freelancers. It also helps small businesses to determine the hourly wage rate of their employees.
Paycheckcity is a free payroll calculator that allows you to deduct the costs related to taxes, so you do not have to do it manually. This software is a payroll system for small businesses. However, it has many more features, so if you need a tool to manage payroll with all the necessary deductions, it’s worth investing in it.
Frequently asked questions
1. How to calculate the hourly rate?
You can calculate the hourly rate following these easy steps.
- First, determine the number of hours worked in a day.
- Then multiply them by working days in a week.
- Next, multiply them by the number of weeks in a year (52).
- Lastly, divide the number obtained from the above steps from the annual salary.
2. How to calculate payments to hourly wage?
To calculate pay to an hourly wage, you will need to multiply the hourly wage by the number of hours worked per week and a total number of weeks in a year.
Calculating an hourly rate and other related expenses is essential to determine the hourly rate and amount. It is not difficult but requires you to be precise and meticulous. Find a tool from the above that will be your paycheck manager calculator.
Did you find this blog helpful? Do you think we missed a paycheck calculator that you think is better? If yes, leave your comment below. For further assistance, get in touch with us.