When entering the remuneration schedule the method of payment can be selected as either Base Annual or Hourly Rate. However, the system will automatically calculate the alternative for you for your reference rounded to two decimal places by default.

This article covers:

## Calculated Annual Salary vs Hourly Rate

**Calculated Hourly Salary = **

**(Basic Annual Salary/ Pay Cycles in a Year) / Hours Per Cycle**

*e.g. Employee A has a:*

*Base Annual Amount - $100,000*

*Pay Cycles - Fortnightly (26 in 1 year)*

*Hours per cycle - 80*

*The calculated Hourly Rate is:*

**($100,000 / 26) / 80**

**= $48.0769230759**

*Round to two decimal places by default*

**= $48.08**

While the remuneration schedule does display both Annual Salary and Hourly Rate, one must be the primary representative value.

This means that if one or the other value does not match with the calculation provided above (relative to the primary value), it cannot be displayed in the subject’s remuneration.

For example if on another payroll system, a subject’s Annual Salary is $100,000 but their Hourly Rate is $47.8, those two values cannot coexist on the same profile. It must abide by the above calculation.

**Note:**Notice a weekly cycle is calculated at 52 weeks; however if the pay cycle is fortnightly this figure will be 26 and if the payment cycle is monthly then this number will be 12.

**Note:**intelliHR does not support calculating a weekly cycle as 52.143 weeks. It must be 52.

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