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View Full Version : Setting up Salary Employees


Carole 1
Nov 7, 2007, 04:55 PM
How do I set up the pay for a salary employee?
Do I determine the pay based on weekly, monthly, or yearly totals.
For example: The employer wants an employee to receive $1200.00 per week gross pay.
Do I times that by 52 weeks (which would be $62400.00). Or do I times that by 4
(4800.00) and then by 12 months ( which would be $57600.00)
Also, if I calculated by the 52 week method, would that cover all weeks in the year, considering that some months have more or less weeks.
Thank You... Carole)

shygrneyzs
Nov 7, 2007, 05:38 PM
I would use the 52 weeks in the year. Would not use "4" - if you use a number for the number of weeks in a month, you would need 4.3, as there are not just four straight weeks in a month. That is what I was taught when I was a health admin and doing payroll.

CindyLynn
Nov 12, 2007, 01:06 AM
it would for sure be x 52 other wise you would miss the months that have 5 weeks. If you want hourly you would divide by 2080 or monthy by 12 or biweekly by 26... have fun!

hontoni
May 7, 2010, 10:58 AM
Since your employer has asked you to pay them #1,200.00 a week, gross pay, this seems to be the number to base everything on.

In my opinion, I would multiply the $1,200.00 by 52 weeks and then divide this by the number of pay periods. If you pay twice a month, divide by 24, monthly would be 12 and so on. If you pay weekly, just work with $1,200.00