Gross Pay is the amount paid to an employee each pay period,.
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.
