Calculating salaried workers' compensation per pay period
Zenefits Payroll makes the following calculations for your salaried workers in our system.
Constants
| Value | Decimal Places | Calculation Method | |
| Hours Per Year | 2080 | 6 | 40 hours/week * 52 weeks = 2080, Industry Standard Value |
| Weekly Pay Periods (W) | 52 | 6 | Industry Standard Value |
| Bi-weekly Pay Periods (BW) | 26 | 6 | Industry Standard Value |
| Semi-Monthly Pay Periods (SM) | 24 | 6 | Industry Standard Value |
| Monthly Pay Periods (M) | 12 | 6 | Industry Standard Value |
| Weekly Pay Period Hours (W) | 40 | 6 | Hours per year/# of Weekly Pay periods |
| Bi-weekly Pay Period Hours (BW) | 80 | 6 | Hours per year/# of Bi-Weekly Pay periods |
| Semi-Monthly Pay Period Hours (SM) | 86.666667 | 6 | Hours per year/# of Semi-Monthly Pay periods |
| Monthly Pay Period Hours (M) | 173.333333 | 6 | Hours per year/# of Monthly Pay periods |
Calculations
| Value | Calculation | Frequency |
| Pay Period Pay | Salary/Pay Periods | Calculate once |
| Salaried Workers Hourly Pay Rate | Salary /2080 | Calculate once |
| Gross Regular Pay | Pay Period Pay - Sum of PTO Pay | Per Pay Period |
| Regular Hours | Pay Period Hours - PTO Hours | Per Pay Period |
| PTO Hours | From PTO or manually entered in edit pay stub | Per Pay Period |
Time Off
For salaried workers on semi monthly pay frequencies, calculating time off can cause questions. For example, if a worker takes 12 days of unpaid time off at the end of May, their pay might reflect as negative. Using the figures from the Constants and Calculations tables above:
86.666667 hours in a Semi Monthly Pay Period
12 days off * 8 hours per day = 96 total hours off in one pay period
The worker would see -10 hours worked for that pay period.