All of the examples assume the following:
Legal employer standard working hours per week is 40.
Currency is US dollars (USD).
FTE is calculated by dividing the worker's working hours per week by the standard working hours per week.
Annualization factor for hourly workers represents the Legal Employer Standard Working Hours per Week x Weeks per Year.
The standard working hours, working hours, and FTE come from the worker's employment record. You can view it using the Manage Employment task in the Person Management work area. The annualization factor and the frequency for the salary come from the salary basis associated with the worker's salary record.
The following table shows the inputs for this scenario for an hourly rate:
Calculation Input |
Value |
---|---|
Worker's standard working hours |
40 |
FTE |
1 |
Annualization factor |
2080 |
Base Pay |
15 USD |
Calculation:
Annual salary: 15 x 2080 = 31,200 USD
Annualized full-time salary: 15 x (2080/1) = 31,200 USD
The following table shows the inputs for this scenario for an hourly rate:
Calculation Input |
Value |
---|---|
Worker's standard working hours |
20 |
FTE |
0.5 |
Annualization factor |
2080 |
Base Pay |
15 USD |
Calculation:
Annual salary: 15 x 2080 x 0.5 = 15,600 USD
Annualized full-time salary: 15 x (2080/1) = 31,200 USD
The following table shows the inputs for this scenario for a monthly rate:
Calculation Input |
Value |
---|---|
Worker's standard working hours |
20 |
FTE |
0.5 |
Annualization factor |
12 |
Base Pay |
5,000 USD |
Calculation:
Annual salary: 5,000 x 12 = 60,000 USD
Annualized full-time salary: 5,000 x (12/0.5) = 120,000 USD
The following table shows the inputs for this scenario for an annual rate:
Calculation Input |
Value |
---|---|
Worker's standard working hours |
20 |
FTE |
0.5 |
Annualization factor |
1 |
Base Pay |
50,000 USD |
Calculation:
Annual salary: 50,000 x 1 = 50,000 USD
Annualized full-time salary: 50,000 x (1/0.5) = 100,000 USD
The following table shows the inputs for this scenario for an annual rate:
Calculation Input |
Value |
---|---|
Worker's standard working hours |
48 |
FTE |
1.2 |
Annualization factor |
1 |
Base Pay |
20,000 USD |
Calculation:
Annual salary: is 20,000 x 1 = 20,000 USD
Annualized full-time salary: 20,000 x (1/1.2) = 16,667 USD