I developed a passing interest in these calculations because the old-fashioned company where I worked (now retired) paid its salaried employees 24 times yearly, mid-month and month-end, when I began working there. (Since it’s Feb. 29 as I write this, I should note that all salaried staff joked about working an extra unpaid day every leap year.)

When the company outsourced its payroll processing and started paying salaried staff weekly (every Friday), I noted that my weekly gross pay was calculated by dividing my annual salary by 261, then multiplying by 5…that is, by using the 52.20 factor in your option 6 above. It also occurred to me that now I did indeed “get paid” for Feb. 29, although I had no luck ever explaining that to anyone else.

Because the HR department provided zero education about these calculations, this change to a weekly pay schedule caused a great deal of confusion, and some hard feelings.

When the company declared bankruptcy and was purchased by another company, I noted that my new employers now calculated my weekly pay simply by dividing my annual salary by 52. I maintained a discreet silence on the subject and enjoyed my employer’s bit of generosity…just a bit over 1% annually, if my calculations are correct.

Thanks again for this summary. It deserves wide distribution.

]]>However, part-time staff need to be paid the higher hourly rate ($17.29 per hour) to comply with the minimum wage decision.

Payroll will need to be careful when configuring the pay system to ensure compliance is achieved.

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]]>If the payroll divisor was set at (say) 52.1786 to get the weekly rate from an annual salary then this result (divided by weekly hours) would be the base hourly rate for starting to do shift calculations. That is the general position but you need to take account of the laws and industrial agreements that apply in your own jurisdiction. I trust that helps. ]]>