How to Work out Your Day Rate
Gather the financial documents that detail the money you have made on a particular job., Calculate the total amount paid for the work you did., Figure out the number of days you worked on the job., Divide your contract or salary total by the number...
Step-by-Step Guide
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Step 1: Gather the financial documents that detail the money you have made on a particular job.
This can include your pay stubs, tax documents and/or signed contracts. -
Step 2: Calculate the total amount paid for the work you did.
Remember to include commission, if that is part of your yearly salary.
Generally, a day rate is calculated according to the gross income, and it does not factor in taxes, 401 K contributions or medical savings accounts.
Taxes vary from state to state and country to country.
If you are attempting to figure out how your daily rate competes against a national or state average, it is especially important to work with gross salary rates. , For a standard, 5-day, work week and salaried job, you would multiply 5 times 52, the number of weeks in the year.
Modify the result, 260, based on any un-paid work days. , For example, if you received $45,000 and worked 260 days, your day rate would be $173 per day.
Imagine you are working as a freelancer and you were paid $7,000 for a project that lasted 3 months.
If you worked 5 days per week, you would multiply 5 times 12 (weeks) to get 60 total working days.
Divide $7,000 by 60 to get your $116.67 day rate. , -
Step 3: Figure out the number of days you worked on the job.
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Step 4: Divide your contract or salary total by the number of days you worked.
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Step 5: Repeat this process with other positions you have held to get a good idea of your salary history.
Detailed Guide
This can include your pay stubs, tax documents and/or signed contracts.
Remember to include commission, if that is part of your yearly salary.
Generally, a day rate is calculated according to the gross income, and it does not factor in taxes, 401 K contributions or medical savings accounts.
Taxes vary from state to state and country to country.
If you are attempting to figure out how your daily rate competes against a national or state average, it is especially important to work with gross salary rates. , For a standard, 5-day, work week and salaried job, you would multiply 5 times 52, the number of weeks in the year.
Modify the result, 260, based on any un-paid work days. , For example, if you received $45,000 and worked 260 days, your day rate would be $173 per day.
Imagine you are working as a freelancer and you were paid $7,000 for a project that lasted 3 months.
If you worked 5 days per week, you would multiply 5 times 12 (weeks) to get 60 total working days.
Divide $7,000 by 60 to get your $116.67 day rate. ,
About the Author
Jacqueline Kennedy
Specializes in breaking down complex lifestyle topics into simple steps.
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