At work today, I had a few clients asking me how do you determine the number of hours for each pay period? To begin this analysis, let’s determine, how many hours are in a year? An employee normally works 8 hours a day x 5 days a week is 40 hours a week x 52 weeks in a year is 2080 working hours per year.
Here is a breakdown of the number of hours per pay period:
Weekly (Paid 52 times a year) is 2080 hrs / 52 times = 40 hours per pay period
Bi-Weekly (Paid 26 times a year) is 2080 hrs / 26 times = 80 hours per pay period
Semi-Monthly (Paid 24 times a year) is 2080 hrs/ 24 times = 86.67 hours per pay period
Monthly (Paid 12 times a year) is 2080 hrs / 12 times = 173.33 hours per pay period
In the future when an employee asks you how the number of hours are determined especially for salary employees, you may use this calculation as an explanation.