Why doesn't my bi-weekly salary multiplied by 26 pay periods equal my annual salary?
The State employee's salary is budgeted as an annual amount within a fiscal year. The annual salary is for 365 days and paid on a bi-weekly basis. The bi-weekly pay consists of 14 days. To arrive at a correct bi-weekly salary rate you must divide the annual salary by the pay period factor: 365 days divided by 14 days per pay period is 26.071428 pay periods in a non-leap year.
Example Payroll Calculation:
Annual Salary $36,000.00 / 26.071428 = $1,380.82 Biweekly Pay
Adjusted Pay Period Factor Non-Leap Year (365 days): 26.071428
Adjusted Pay Period Factor Leap Years (366 days): In case of a leap year there is an additional day (366 days in a year) so the pay period factor to be used is 366 days / 14 days per pay period = 26.142857 adjusted pay period. This gives a further reduced biweekly rate.
Why is the published Annual Salary Rate different than what is actually earned in a calendar year?
The certified annual salary is based on fiscal year. So if you calculate the salary received from July 1, 2003 to June 30, 2004 you will arrive at the certified annual salary. Please see the following example:
Grade 10 step 18 annual salary $39,002.00 Bi-weekly $1,491.88
July 1, 2003 crossover pay period ends 7/8/03:
8/14 of $1,491.88 = 852.50 (7/1/2003 - 7/8/03 = 8 days pay)
25 X $1,491.88 = 37,297.00 (7/9/2003 - 6/22/2004 = 25 bi-weekly pays)
8/14ths of $1,491.88 = 852.50 (6/23/2004 - 6/30/2004 = 8 days pay)
Total Salary $39,002.00