Asked in Real Estate InvestingAccounts PayableAccounts ReceivableThe Difference Between
What is the difference between salary and hourly?
September 07, 2011 8:56PM
Salary is based on your year's work. You get paid on exactly on each pay period regardless of your hours being worked. Generally salaried workers put in 10% overtime or more with no financial benefit. On the plus side taking time off for dental appointments and family emergencies (within reason) is not docked from your pay, after all you will make it up. Salaried employees are typically expected to work longer hours and are more professional individuals.
Hourly pay is an assigned hourly rate you get for the hours you work. ex. 24 hours at $7.00 an hour=168.00
Further, if you work a partial hour, i.e. 7 1/2 hours, your rate will be prorated for those hours. So, if you make $20.00 per hour, on that day you would earn: $20.00 x 7 hrs ($140.00) and $10.00 for the half hour, $150.00 total. Some employers round to the 15 minute mark, others to the minute.