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What to include in gross pay computation assignment?
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What is Gross Pay?
Gross pay is the entitled salary of an employee before the deduction of taxes and other subtractions. Gross pay look nicer with the digits, but do not really come through after all the taxes deduction.
How to calculate and compute gross pay?
- Hourly Gross Pay:
The gross pay for employees working on hourly basis is calculated by multiplying number of hours worked with the hourly rate. In case of overtime, the hourly rate of over time is added to the pay.
- Salaried Gross Pay:
Under this section, employee gross pay is calculated by dividing the total annual pay by the number of periods (can be monthly, weekly) paying in the entire year of the employee.
Examples of calculating hourly and salaried gross pay
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