Nearly all types of loan applications, such as those for home mortgages, student loans, car loans and credit cards, require that you provide your gross annual salary. This information also typically is needed when you request financial assistance in the form of grants to pay for schooling or for public assistance. Your gross annual salary is the amount of money that your employer pays in return for your work over the course of one year. It is not the amount of money that you bring home. To calculate your gross annual salary, it is important to remember that your gross salary is what your employer pays to you before deductions such as taxes, insurance or retirement plan contributions are taken out. Your take-home pay is referred to as net pay. There often is a very big difference between the two amounts.
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- Pay stub
Determine whether you are paid an hourly wage or a salary. Hourly workers receive a certain dollar amount for each hour or portion of one hour that they work. Salaried workers are paid a predetermined wage regardless of the number of hours they work. Upon hiring, salaried employees are presented with a gross annual salary figure. If you are unsure of this amount, ask someone in your employer's human resources or personnel department for the figure.
Look on your most recent pay stub to find your hourly pay if you're an hourly employee. Multiply this figure by the number of regular hours you usually work--up to 40--in one week. If you work year-round, multiply this figure by 52, the number of weeks in a year. If you work seasonally, multiply this figure by the number of weeks you worked or plan to work.
Multiply the number of overtime hours you work by 1.5 if you're an hourly worker. Some employers pay double or triple time to employees who work on holidays or under special conditions. If you receive double or triple time, multiply this figure by two or three, respectively.
Determine all extra pay, such as tips, bonuses, holiday and vacation pay, commissions and profit sharing.
Add together all of the above compensation amounts to determine your gross annual salary figure.