There are different ways how the New York City Employees get paid. The Payroll Administration Office in New York City has been guiding in this matter since 1984. Typically, one can get paid on a bi-weekly or hourly basis. The Pay Rate Calculator is based on the method in which an employee gets paid. There are certain things one should know about the Pay Rate Calculator-
- What is a Pay Rate Calculator?
Pay Rate Calculator is an automatic method of calculating your bi-weekly gross or annual salary. The calculator works based on the information or data provided. Typically, there are three types of calculation that the calculator works on-
- The first one is the calculation of the bi-weekly gross salary. This is for those employees who get paid on a bi-weekly basis. In this case, one needs to put the total annual salary, and the calculator calculates the bi-weekly gross wage automatically.
- The second one is the calculation of the annual salary. If someone knows his bi-weekly gross but doesn’t know the total annual salary, he can calculate the latter using the Pay Rate Calculator.
- Apart from these two, the Pay Rate Calculator calculates the hourly and premium rates as well. This is applicable for those who are paid overtime.
However, in the case of employees who get paid hourly or daily, the annual salary calculation is not applicable at all. In those cases, the Pay Rate Calculator calculates the bi-weekly pay only. It gets done by a simple multiplication of the daily or hourly rates to the total number of days or hours worked all together.
- What happens in the case of a Leap Year?
Naturally, as there are 366 days in a Leap Year, the calculation gets a little altered. Here are some points to remember about a Leap Year-
- The annual salary does not get changed.
- Bi-weekly gross salary can be a little altered in the first pay period of a leap year. This change will also be seen in the first pay period after the Leap Year. The reason for this is the difference of one day in the calculation.
There are certain things one should know regarding the calculation-
- The payroll system of New York City is based on the fiscal year that starts on July 1 and ends on June 30.
- In the case of the Fiscal year 2021, the beginning date is July 1, 2020, and the ending date is June 30, 2021. 2021 as a fiscal year is not a leap year.
- Different types of calculation on the Pay Rate Calculator:
As mentioned before, there are different types of calculations that a Pay Rate calculator performs. Let’s have a look at those calculations and formulas one by one-
- Bi-Weekly Gross Calculator:
In this case, one needs to enter the annual salary amount-
- The formula, in this case, is: Bi-Weekly Gross= Annual Salary/ 365 days*14days
- The multiplication with 14 is due to the presence of 14 days in the bi- weekly pay period.
- In case of a leap year, there will be 366 days instead of 365 days.
- Annual Salary Calculator:
If an employee wants to calculate their annual salary, they need to enter their bi-weekly gross as the data provided. Automatically the Pay Rate Calculator will calculate the yearly salary using that data.
- Here, the formula that the Pay Rate Calculator uses to calculate the annual salary is: Annual Salary = Bi-weekly Gross/ 14 days*365 days
- So, first, by dividing the Bi-weekly gross by 14, the calculator counts the daily amount and then multiplies it with 365 days in a year.
- In case of a Leap Year, the multiplication will be with 366 days instead of 365.
- Hourly & Overtime Rate Calculator – 7 – Hour Day:
If someone works 7 hours a day, they need to input their annual salary to calculate
their hourly rate or overtime rate.
- The formula to calculate the hourly rate is: Hourly rate = Bi-Weekly Gross / (Hours/Year)
- The formula to calculate the regular hours per year is Regular hours per year = Regular hours per day * 261 workdays per year. However, in 8 hours of working per day, the calculations will get a little changed.
- Premium Rate Calculator:
Here, the useful two formulas are-
- Premium rate Time and One-Half = hourly rate * 1.5
- Premium rate Double Time = hourly rate * 2
To sum up, Pay Rate Calculator is really helpful to calculate the details regarding the payment. However, when it comes to the conflict with the Payroll Management System, the latter’s decision will be considered only.