How to Calculate Salary to Hourly: Businesses do need talented personnel for the completion of tasks on time and to grow in a competitive business environment. Sometimes businesses desire to hire a person, but he is already engaged in a well-satisfied job. The person doesn’t want to leave his current job, and you do not have enough finance to hire such experienced personnel on a permanent basis. You can hire him on an hourly basis, if this can be good for your business, you can use the salary calculator to find the hourly rate of the personnel.
Small businesses do want to hire employees on a part-time basis to manage their scarce budget. You may wonder how to calculate salary. If the employee is working for some days of the week, you can use a daily monthly income calculator by calculator-online.net to find out his/her salary according to the number of days the employee has worked. The employee’s salary normally costs 70 % of the expenses of the business, so every businessman wants to control this head of the ledger.
In this article, we will find out how to calculate the monthly salary on an hourly basis, to find out the part-time salary:
Benefits of Implementing the Hourly Rate!
It is convenient for your business to calculate the hourly rate for the service, this rate is proportional to the number of hours an employee worked in your company, you are simply paying the employee according to the number of hours. You can use an hourly to monthly income calculator to find out the hourly rate of your work, the hourly rate should be communicated to the employee before the commencement of the job. The hourly rate can be applied to both the full-time employees and also to the part-time employees.
Full-time employees are those, who are working full-time during the day and working on the basis of a job contract, the part-time employees normally working for few hours during a day or working for one to two days of the week for the company. When you calculate the monthly on the basis of the hours, you can implement the same rate for the part-time employees also for the full-time employees, and you can calculate the hourly rate by using the hourly to monthly salary calculator, by doing this you can calculate the salary on the hourly basis.
Method of Calculating the Hourly Rate from Salary
You need to know there are different salaries for a different position, fo example, you can’t pay the same amount of annual salary to a department manager and to a line manager, there is a huge difference of annual salary and hourly rate as well, now when you decide the annual rate of the salary for all the position. You can easily calculate the hourly rate by the following method:
- You need to divide the full-time annual salary of a certain position by 52 (the number of weeks)
- Now the standard weekly hours are 40, so you need to divide the result by 40, to get the hourly rate.
- Now multiply the hourly rate with the number of hours per week, for a particular position.
- Multiply the result by 52 to get the annual hourly rate salary of any employee.
You use this simple calculation to know the hourly rate salary for both full-time and part-time employees, this can be a good monthly income calculator for your business.
Try to Understand the Concept by Practical Example:
Now we try to understand the concept by a practical example. Now consider that an annual salary of an employee is $30,000, for 40-hours a week for a particular position.
The query is to calculate the hourly salary of a part-time employee who worked for 25 hours of the week.
Now you need to follow the following steps to calculator the hourly rate:
- Now first you need to divide $30,000/52 to find the weekly salary, this would be $ 576.9.
- Now divide the result by 40, $576.9/40, we would get $14.4.This is our hourly rate.
- Now to find the salary of 25 hours per week multiply it by 25,
$14.4x 25= $360.5
- If the employees working for a year multiply it by 52, then we find the result $ 360.5×52= $18746 annual yearly salary
This salary calculator can be great for your business, to hire part-time employees for your business
The calculation of the hourly rate is critical for hiring a part-time employee, businesses do need to outsource work, so they can use the above-mentioned monthly income calculator for outsourcing employees on an hourly basis.