What is salary rate?

 

Salary Rate

Calculated by dividing the amount of the employee’s flat dollar amount by the number of hours within the specified pay frequency. Thus, for an employee who is paid weekly (equals 40 hours) and has a salary as their primary flat dollar amount for which the value is $400, the “Salary Rate” would be $10.00. If, however, a value is entered for “Standard Hours”, that value is used as the divisor. This means that if standard hours are not entered, the hours used as the divisor are based on pay frequency as follows: Weekly = 40, Biweekly = 80, Semi-Monthly = 86.666, Monthly = 173.333, Annual = 2080.