Salary Calculation...

1ddqd

I've been offered a position that is salaried but eligible for overtime. However, the math isn't working out.

My annual salary is $51,600. The overtime rate is $37.21 an hour; by my calculations, it should be higher:

$51,600 / 12 = $4,300 (per month)
$4,300 / 2 = $2,150 (per check) (bi-weekly pay)
$2,150 / 2 = $1,075 (per week)
$1,075 / 40 = $26.875 (per hour)

$26.875 * 1.5 = $40.31 / hour.

How the hell did they get $37.21? I'm in Texas.

Dunadan019

there are 26 biweekly pay periods in a year, you're calculating bimonthly payments.

$51,600 / 26 = $1984.62 (per month)
$1984.62 / 80 = $24.80 (per hour)

$26.875 * 1.5 = $37.21 / hour.


26 pay periods with 80 hours make your rate 24.8 which is 37.21 overtime.

TechBoy

On a Bi-Weekly pay scale there will be 26 paychecks a year. 2 times a year, you will get 3 paychecks a month. Yeah, those months are sweet :P

If you redo the math keeping that in mind then it works out to $37.21

EDIT: *shakes fists angrily

1ddqd

So my current job is counter offering $58,000 - OT by your calc would be $41.82 yes? They didn't specifically state because there's no counter offer letter *yet*

Dunadan019

1ddqd wrote: »

So my current job is counter offering $58,000 - OT by your calc would be $41.82 yes?

yes

1ddqd

Awesome, thanks guys!

Kathris

Easier way to do it FYI: Take annual pay, divide by 2080.

That's your hourly rate.

(Or at least that's how everywhere I have ever worked in Cali and Colorado have done it)

tsmvengy

Kathris wrote: »

Easier way to do it FYI: Take annual pay, divide by 2080.

That's your hourly rate.

(Or at least that's how everywhere I have ever worked in Cali and Colorado have done it)

Given that 2080 = 26*80, then yes, this will work too!