How to calculate biweekly salary
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Whether you’re an employer organizing payroll or an employee curious about your take-home pay, understanding how to calculate a biweekly salary is essential. In this article, we’ll walk you through the steps necessary to determine a biweekly salary based on an annual salary or hourly wage.
A biweekly salary refers to a paycheck received every two weeks, equating to 26 pay periods per year. This contrasts with a monthly salary, which involves 12 pay periods per year. Calculating a biweekly salary depends on whether the employee receives an annual salary or an hourly wage.
1.Calculating Biweekly Salary Based on Annual Salary
To calculate the biweekly salary based on an annual salary, follow these steps:
Step 1: Determine the annual salary
Obtain the employee’s gross annual salary before taxes and other deductions.
Step 2: Divide by the number of pay periods
Divide the annual salary by 26 (the number of biweekly pay periods in one year).
Biweekly Salary = Annual Salary / 26
For example, if the annual salary is $52,000:
Biweekly Salary = $52,000 / 26 = $2,000
In this case, the employee would receive a gross biweekly salary of $2,000 before deductions.
2.Calculating Biweekly Salary Based on Hourly Wage
To calculate the biweekly salary based on an hourly wage, follow these steps:
Step 1: Determine the hourly wage
Obtain the employee’s regular hourly wage before taxes and other deductions.
Step 2: Determine hours worked per week
Calculate how many hours an employee works weekly. It’s essential to consider overtime or any schedule fluctuations during this step.
Step 3: Multiply by two for total hours in two weeks
Multiply the weekly hours by two to obtain the total hours worked in two weeks.
Step 4: Calculate the biweekly salary
Multiply the hourly wage by total hours worked in two weeks.
Biweekly Salary = Hourly Wage x Total Hours in Two Weeks
For example, if an employee earns $20 per hour and works 40 hours per week:
Total Hours in Two Weeks = 40 x 2 = 80
Biweekly Salary = $20 x 80 = $1,600
In this instance, an employee would receive a gross biweekly salary of $1,600 before deductions.
Keep in mind that these biweekly salaries are pre-tax and pre-deduction amounts. Employers will need to withhold taxes and other contributions based on company policies, benefit packages, and federal or state regulations. Employees should carefully review their pay stubs to understand their net pay after deductions.
In conclusion, calculating a biweekly salary is a straightforward process requiring only a few pieces of information. By following these steps, you can successfully determine the appropriate amounts for both salaried employees and those who work hourly.