Q:

How do you calculate gross annual income?

A:

Locate the gross pay under the "Total Earnings" or "Gross Pay" section of a paycheck and multiply the amount by 12, 24, 26 or 52, according to Cynthia Measom for the Houston Chronicle. Multiply by 12 if payment is once a month or 24 for a pay frequency that is twice a month. Multiply by 26 if the payment cycle is every two weeks or 52 for weekly paychecks.

Measom mentions that annual gross income is a person's yearly salary before deductions are made. Avoid using the "Net Pay" portion of the paycheck because this includes deductions from taxes and medical insurance. How often a person gets paid and the amount determines annual gross income. One example is a $1,200 weekly pay being multiplied by 52 to get an annual gross income of $62,400.

According to Measom, a distinction must be made between being paid twice a month and every two weeks, and confusing the two results in a wrong calculation. For example, being paid twice a month means being paid on scheduled payment days that may include the 1st and 15th of every month, while being paid on a bi-weekly basis means payment every 14 days. Payment every two weeks may also mean receiving payment three times a month at two times during the year.


Is this answer helpful?

Similar Questions

  • Q:

    How do you calculate gross monthly income?

    A:

    Gross monthly income is simply the total amount one is paid per month without any deductions for taxes and benefits. To calculate, simply multiply the hours worked per month by the hourly wage. If paid a salary, the monthly amount is the gross monthly income.

    Full Answer >
    Filed Under:
  • Q:

    How do you find out how much your paycheck will be?

    A:

    To find the exact amount of your upcoming paycheck, determine withholdings for taxes, social security, Medicare and other automatic withdrawals. However, many employers factor paycheck amounts several days ahead of time and provide access to the information.

    Full Answer >
    Filed Under:
  • Q:

    How much do radiologists make per year?

    A:

    As of 2012, according to a survey by Medscape, radiologists of all experience levels earn an average salary of $349,000 per year, notes Forest Time for the Houston Chronicle. Radiologists earn more as they gain experience, and first-year radiologists earn a median salary between $330,000 and $335,000.

    Full Answer >
    Filed Under:
  • Q:

    What does "gross salary" mean?

    A:

    "Gross salary" refers to a person's income, typically stated on an annual basis, prior to any deductions or taxes. Gross salary is different from net salary, which is the actual take-home pay a person receives after the employer withholds taxes and other deductions.

    Full Answer >
    Filed Under:

Explore