DEFINITION OF INCOME
Income is the regular payment that an employer makes to his or her employees in exchange for the work that they do. It is paid at regular periods, usually monthly, and is frequently represented as an annual sum. Salaries are normally calculated by comparing what other employees in similar jobs in the same sector and region earn. In many countries, the supply and demand of resources play a significant role in determining salary, with the number of vacancies for a specific position compared to the number of people in the area who could fill it.
There are different types of wages
Minimum Wage:
It is the most extensively familiar type. It is the lowermost hourly wage that can be paid to any employee. Different states have different lowest wage rates.
Living Wage:
It is the lowest possible amount that is required to afford all the costs of basic living of any family. It also be determined by the total number of people in your family. The annual wage calculator can tell the estimation of the earnings of one year so an employee can make a connection between their earnings and needs.
Prevailing Wage:
This category usually mentions to the rate of pay contractors and dealers must offer their workers when doing any kind of work with any government organization.
THE INCOME CALCULATOR
PURPOSE
This calculator combines a number of features that help you make estimates for pay negotiations and modifications to your entire benefits package. This calculator can be used by someone who has previously held a salaried position but is now considering a contract with an hourly income, or vice versa. It assists you in tying together the numbers you'll need to make informed decisions and ensure you've addressed all of the relevant aspects of a compensation topic.
BENEFITS OF INCOME CALCULATOR
1) You can use it to get an average salary in your field.
2) You can use it to know if you are overworked.
3) You can use it to get an average salary in your field and also you can use it to bargain for a higher salary.
4) It can be used to enable someone to be a great planner.
5) You can Use it to request a pay increase.
MISSION OF THE INCOME CALCULATOR
1) It is transparent.
2)It is efficient.
3)It is accurate.
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HOW TO EFFICIENTLY USE THE CALCULATOR
1) When calculating the annual salary wage:
Procedure
a) Indicate the amount earned per hour.
b) Indicate the amount of hours worked per week
(This is when you want to know how much you earn per year)
[Private Equation]
Formula
Annual Salary = Salary wage (number of hours worked per year)
You should input the wage in $$
EXAMPLE OF CALCULATING ANNUAL SALARY WAGE
Jane works at Unga Limited Company, she is paid $50 per hour. She works 35 hours per week. How much is her salary annually?
Solution
In a year, the total number of weeks are 52.
Annual Salary= ($50*35) * 52
= $91,000
Jane earns $91,000
2) When Calculating salary to hourly pay
Procedure
a) Indicate the amount earned per year
b) Indicate the number of hours worked per week
( This is used when you want to know how much your paid per hour)
Hourly rate = Annual Salary / (number of hours worked per year)
You should enter the annual salary in $$
EXAMPLE OF CALCULATING HOURLY PAY
Musyoka is paid an annual salary of $40,000. He works 40 hours per week. How much does he earn per hour.
Solution = $40,000/(40*52)
= $19
Musyoka earns $19 per hour.
3) When calculating work hours per year
Procedure
a) Indicate the number of hours you have worked per week.
(This will enable you to know the total number of hours worked per year)
Formula
work hours per year = number of hours worked in a week * 52 weeks.
EXAMPLE OF CALCULATING WORK HOURS PER YEAR
Berryl works 45 hours per week. How many hours does she work per hour.
Solution
A year has 52 weeks.
= (hours per week*52)
=45*52
= 2,340 hours
Berrly works 2,340 hours per year.
THE AUDIENCE TARGETED BY INCOME CALCULATOR
It is used by workers who want to keep track of their earnings and their working hours. Also, employers can use the income calculator to keep track of the amount of money they are supposed to pay their employees per hour and also annually.
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CONCLUSION
Keeping track of your salary is a vital way of unlocking wealth since you will be able to use your earnings properly. This income calculator will help you efficiently to be on that right track of financial liberation.
REFERENCES
https://www.thecalculatorsite.com/finance/calculators/hourly-to-salary.php
https://wealthdrift.com/how-to-calculate-net-worth-of-a-person-its-importance/
Source images: https://www.shutterstock.com/search/salary+calculator
https://freerangestock.com/photos/71776/salary-calculator-shows-pay-salaries-and-calculate.html