How to Calculate a Work Week Based on Annual Income
Original post by Alia Nikol of Demand Media
Although salaried employees are paid based on annual salary, they do not receive one paycheck a year, nor do they pay expenses just once per year. Therefore, an annual income figure doesn't always translate into the most useful knowledge when deciding how to manage household expenses. If you have weekly expense obligations, you can use your annual income information to determine the amount of pay you earn each work week.
Determine the average number of paid hours you work each week. Many full-time employees work 40 hours per week. If your work hours vary each week, calculate the total number of hours you work in a month and divide the number by four. The result is the average number of hours you work each week. Do not include unpaid hours, such as your lunch hour in the calculation.
Multiply your weekly average by the number of weeks you work each year. If you plan on taking any unpaid vacation time, subtract the number of unpaid vacation weeks from your annual work-week total. If you take paid vacation, do not subtract any weeks from your annual total. For example, if you take two weeks of paid vacation, the number of weeks you work during the year is 52 weeks. If you take two weeks of unpaid vacation, the number of weeks you work during the year is 50 weeks.
Divide your annual income figure by the number of weeks you work during the year. The result is your average work-week income based on your annual salary.
- Convert Units.com: $36,000 a Year is How Much an Hour?
- CItadel Graduate College: FAQs: Converting From 40 Hour Workweek to 37.5 Hour Workweek (PDF)
About the Author
With a background in taxation, Alia Nikol specializes in business and personal finance topics. She is an IRS enrolled agent pursuing a Bachelor of Science in accounting and journalism at Metropolitan State College of Denver.