K Changes In Work Hours Examples

 

Program	Manual Section
All programs	MA604G

 

Examples

1) Example 1: Paid weekly and work hours vary

The customer reports that their new work hours will vary between 10 and 20 hours per week. Their pay rate is $8.25 per hour and that will not change. To forecast the new pay amounts:

• Add the range of hours to get the average weekly hours: (10 + 20) = 30. Divide by 2 = 15 (Expected averaged weekly hours).

• Multiply by 2 to get the average hours per pay period. (15 x 2) = 30 (Expected averaged bi-weekly hours).

• Multiply by the pay rate to get the new expected bi-weekly pay rate (30 x 8.25) = $247.50

 

2) Example 2: Paid semi-monthly and work hours vary

The customer reports that their new work hours will vary between 20 and 25 hours per week. Their pay rate is $8.25 per hour and that will not change. To forecast the new pay amounts:

• Add the range of hours to get the average weekly hours: (20 + 25) = 45. Divide by 2 = 22.5 (Expected averaged weekly hours).

• Multiply by 2.15 to get the average hours per pay period (22.5 x 2.15) = 48.37 (Expected average semi-monthly hours)

• Multiply by the pay rate to get the new expected semi-monthly pay rate (48.37 x 8.25) = $399.05