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Gross Pay

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Gross Pay is the total amount paid to an employee each pay period. Gross pay includes regular pay, overtime pay, and other taxable earnings (such as reimbursements).

Here is how gross pay is calculated:

  • Hourly Gross Pay
    Hourly gross pay is calculated by multiplying the number of hours worked in the pay period times the hourly pay rate. Overtime pay is also included in the gross pay calculation.

  • Salaried Gross Pay
    Gross pay for salaried employees is calculated by dividing the total annual pay for that employee by the number of pay periods in a year. For example, if a salaried employee's annual pay is $30,000, and he or she is paid twice a month, the gross pay for each of the 24 pay periods is $1250.

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