How To Calculate Yearly Salary (paycheck, job, bill, office)

[chgodon]

My friend found a job at $38,313.60 annually. The annual salary divided by 12 months, divided by 160 hrs is $19.95 per hour. He got the job acceptance letter which indicated the salary to be $18.42 per hour. What did I calculate wrong?

I found a job with a $3,110.09 to $4,066.18 monthly salary. What is this per hour? I calculated $19.43 to $25.41 per hour.

[RDH35]

Divide 38,313.60 by 52 weeks then by 40, not by 12 months. That's where they are getting the hourly.

[chgodon]

So a $3,110.09 monthly salary is $17.94 per hour, NOT $19.43. Thanks for the formula

[NJBest]

Originally Posted by chgodon

So a $3,110.09 monthly salary is $17.94 per hour, NOT $19.43. Thanks for the formula

You have to take into consideration time off. Hourly, you cannot bill for hours not worked. The standard is to use 2000 hours/year. This accounts for 10 holidays off.

[randomlikeme]

This is how they are doing it....

40 hours a week * 52 weeks per year = 2080 hours.

$38,313.60/2080 = $18.42/hour.

[johnnytang24]

Originally Posted by chgodon

My friend found a job at $38,313.60 annually. The annual salary divided by 12 months, divided by 160 hrs is $19.95 per hour. He got the job acceptance letter which indicated the salary to be $18.42 per hour. What did I calculate wrong?

I found a job with a $3,110.09 to $4,066.18 monthly salary. What is this per hour? I calculated $19.43 to $25.41 per hour.

How many months only have 160 hours of work?

[Hemlock140]

We get 26 paychecks a year, not 24 due to the variation in number of days in the month, and getting paid every other Friday. The salary is annual, not hourly, so we calculate hourly as mentioned above.

[MrRational]

Originally Posted by chgodon

My friend found a job at $38,313.60 annually.
The annual salary ...What did I calculate wrong?

52w x40h =2080 annual hours; $38,313 /2080 = $18.42per hour

The much more difficult issue is whether the job is actually limited to 2080 hours.
Rather few are.

Far more likely will be and extra 2-8 hours per week in the office...
and then having the paid holiday and vacation time off trimmed down.

[DC at the Ridge]

Because every month except February exceeds 4 weeks, rather than divide by 12 months, divide by 13 months, then divide by 160 hours. $18.42/per hour will result.

[unplugme71]

It's always 52 weeks * 40 to calculate hours in a year. Then you can do whatever you want with that.