Question 1

How do I convert an annual salary to an hourly rate?

Accepted Answer

Divide your annual salary by the total number of hours you work per year. For a standard 40-hour week over 52 weeks (2,080 hours), the formula is: Hourly Rate = Annual Salary ÷ 2,080. For example, $60,000 ÷ 2,080 = $28.85/hr.

Question 2

Should I use 52 weeks or 50 weeks in the calculation?

Accepted Answer

It depends on your situation. If you receive a true annual salary regardless of vacation, use 52 weeks. If you only get paid for weeks you actually work (common for contractors or hourly workers), subtract your unpaid vacation weeks. Most salaried employees use 52.

Question 3

What is the standard number of working hours per year?

Accepted Answer

The U.S. standard is 2,080 hours per year (40 hours/week × 52 weeks). Accounting for 10 federal holidays reduces it to roughly 1,960–2,000 paid hours. Contractors often calculate on 2,000 hours for a clean estimate.

Question 4

How do biweekly and semimonthly pay differ?

Accepted Answer

Biweekly pay means you're paid every two weeks — 26 paychecks per year. Semimonthly means twice a month — 24 paychecks per year. Biweekly is more common in the U.S. Two months per year you'll receive three biweekly paychecks instead of two.