Business

Hourly Paycheck Calculator

Enter wages and hours worked as well as the overtime hours worked on the Hourly Paycheck Calculator to calculate your paycheck weekly, bi-weekly, monthly, and annually.

If you’re getting paid based on hours worked, you are an hourly employee. Your employer is obligated to pay you more if you work more than 40 hours during the workweek. The rate of overtime pay must be at least 1.5 times more than regular pay. For example, if you’ve worked 50 hours during the week, you will get 40 hours of regular and 10 hours of overtime pay.

Here is how it should work for an employee who’s getting paid $20 per hour.

Regular Pay: 40 x 20 = $800

Overtime Pay: 20 x 1.5 = $30 per hour

10 x 30 = $300

Total Weekly Paycheck: $1,100

Use the hourly paycheck calculator below to enter money amounts and figure out your paycheck for that week, half the week, month, and year.

Hourly Pay vs. Salary Pay – What’s the difference?

We went over the hourly pay but what about the salaried employees?

Salaried employees get paid based on their salary. So, the number of worked hours doesn’t matter. Generally, companies pay managerial positions based on a salary rather than hourly.

A salaried employee paycheck is always going to be the same every pay period. To be paid salaried, your job must be exempt under the Fair Labor Standards Act. If your job duty is governed by the FLSA, you are not exempt, thus, can’t be paid salaried.

This is simple but if we were to broaden it to make it much informative, we would need to look at what makes an employee exempt and non-exempt.

There isn’t a set rule for everything as far as these go but for an employee to be exempt, there are a few things that needs to be known. For an employee to be exempt, he or she must be making at least $455 per week or $23,660 per year.

In addition to this, the employee must be performing exempt duties that require independent judgment and discretion for half the hours worked. If an employee is exempt, the pay can be based on salary.

Which one is better?

There are advantages and disadvantages to both. It mostly depends on your duties and the total number of hours worked during the week. For example, if you’re a salaried employee and getting paid $50,000 annually but working about 50 hours a week, this would roughly equal to $20 per hour.

In comparison, another employee who’s doing the job as you but getting paid $25 per hour, it would be the same amount of pay at the end of the year—for fewer hours worked.

Therefore, you need to see the situation for yourself and decide whether or not you’re better off being a salaried or hourly employee. If you’re paid hourly, this may put you unguarded. At any time where a company is struggling financially, hourly-paid workers are the ones that get affected first. After all, it’s easier to cut some of the hours than replacing a salaried position entirely.

This doesn’t mean that hourly-paid workers are disadvantaged. Hourly paid employees find it easier to take more of their time for themselves because work and personal life is separated between hours. Even if you’re working over 40 hours a week, you will be able to make up yourself time to focus on your personal lifestyle.

The bottom line is it comes down to your lifestyle and what you want from your workplace. If you want paid leave and employer-sponsorships, being paid a salary is going to get you further. If work and personal life is something you want to separate entirely and wouldn’t want to be called off for work, hourly-paid positions are going to be more suitable.

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