Calculating salaried workers' compensation per pay period
Zenefits Payroll makes the following calculations for your salaried workers in our system.
|Value||Decimal Places||Calculation Method|
|Hours Per Year||2080||6||40 hours/week * 52 weeks = 2080, Industry Standard Value|
|Weekly Pay Periods (W)||52||6||Industry Standard Value|
|Bi-weekly Pay Periods (BW)||26||6||Industry Standard Value|
|Semi-Monthly Pay Periods (SM)||24||6||Industry Standard Value|
|Monthly Pay Periods (M)||12||6||Industry Standard Value|
|Weekly Pay Period Hours (W)||40||6||Hours per year/# of Weekly Pay periods|
|Bi-weekly Pay Period Hours (BW)||80||6||Hours per year/# of Bi-Weekly Pay periods|
|Semi-Monthly Pay Period Hours (SM)||86.666667||6||Hours per year/# of Semi-Monthly Pay periods|
|Monthly Pay Period Hours (M)||173.333333||6||Hours per year/# of Monthly Pay periods|
|Pay Period Pay||Salary/Pay Periods||Calculate once|
|Salaried Workers Hourly Pay Rate||Salary /2080||Calculate once|
|Gross Regular Pay||Pay Period Pay - Sum of PTO Pay||Per Pay Period|
|Regular Hours||Pay Period Hours - PTO Hours||Per Pay Period|
|PTO Hours||From PTO or manually entered in edit pay stub||Per Pay Period|
For salaried workers on semi monthly pay frequencies, calculating time off can cause questions. For example, if a worker takes 12 days of unpaid time off at the end of May, their pay might reflect as negative. Using the figures from the Constants and Calculations tables above:
86.666667 hours in a Semi Monthly Pay Period
12 days off * 8 hours per day = 96 total hours off in one pay period
The worker would see -10 hours worked for that pay period.
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