Calculating annual salary for an hourly employee

The Benefits Administration application calculates an annual salary for an hourly employee for these reasons:

• To calculate the annual salary for coverage, contribution, and flex dollar calculations

• To calculate limits for plans with the contribution types contribution limits, match limit schedule, and match percent schedule

To calculate the annual salary for an hourly employee, the Benefits Administration application uses this equation:

Hourly rate * Job code FTE * Annual hours = Annual Salary

How the Benefits Administration application determines the hourly rate, job code FTE, and annual hours depends on whether these values are current or if they are based on an as of date or the first of the month.

If these values are current, then the hourly rate and job code FTE are from Employee (HR11.1); the annual hours figure is from Job Code (HR06.1) or, if the employee is not assigned a job code, from Company (HR00.1).

If these values are based on an As of date or the first of the month, then these values are based on history files.