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If you work in human resources, you will need to be ready to answer a variety of questions regarding paychecks. To answer many of these questions, you will need to know how to calculate wages from rates to salaries for various different time frames. This guide will help you convert bi-weekly pay to an annual salary. If you are an employee who wants to determine your own wages without talking to human resources, this guide will help you as well.
Calculating an Annual Salary from Bi-Weekly Pay
Determine your bi-weekly wage. If you are paid by the hour this would be the number of hours you work in two weeks multiplied by your hourly wage. The amount you get from this calculation would be your pay before taxes.
If your pay varies from paycheck to paycheck, you will want to get an average amount of how much you get paid bi-weekly. You can do this by adding together the amounts of the paychecks you have received then dividing the sum by how many paychecks you have received.
For example, if you have received five paychecks for $650, $700, $700, $805 and $500, you add together the amounts to get 3,355. Divide that by five: 3355 / 5 = $671. In this example, the average bi-weekly pay is $671.00.
Determine how many paychecks you will have in a year. For the simplicity of this guide, we will say 26, which is 52 weeks divided by two. You won't always have 26 paychecks, though, due to when pay periods fall in a month.
Multiply your bi-weekly pay by the number of paychecks you will receive in the year.
Annual Salary = (bi-weekly pay) x (number of paychecks in a year) For example, if you get paid $671.00 bi-weekly and will receive 26 paychecks, your annual salary would be $671.00 x 26 = $17,446.
Determine whether you want the gross or net annual salary. Gross is before taxes and net is after taxes. In our example the final amount was the gross annual salary because it was based on the gross bi-weekly pay.
- Determine whether you want the gross or net annual salary. Gross is before taxes and net is after taxes. In our example the final amount was the gross annual salary because it was based on the gross bi-weekly pay.