The total expenditure on wages calculator is used to estimate the total amount of wages that an employer will incur with respect to a given period of time. This will help the company evaluate the feasibility of the wage payment of the company.
This documentation will consist of distinct sections as listed below;
- Introduction
- Background information
- Description
- Instructions
- Implementation
- Conclusion
- References
1.Introduction
The total expenditure on wages will help make decisions based on the feasibility of a work to be done by all the employees. Project managers will be able to base their plan on numerical driven data that will improve efficiency and productivity to wage of employees in their work.
Small and medium businesses will be able to make wage decision based on time periods to evaluate if they are getting in valid contracts and avoid over spending. Employees will compute estimations to make strong salary negotiation decisions.
2. Background Information
The total expenditure on wages calculator enhances the computation of the total amount that an employer pays out to an all its employees based on the pay rate(hourly ,daily or monthly). This will enable businesses to estimate total amount to pay and the value of the work to determine the employee affordability.
3.Calculator Description
Annual salary is the amount of money your employer pays you over the course of a year in exchange for the work you perform. The total amount of wages per employee is then multiplied by the number of employees.
The annual pay a single employee is paid per year
) is then multiplied by the total number of employees keyed in.
4. Calculator instructions
The calculator uses an equation to calculate wages per hour, month and year. This equation will calculate a gross annual salary based on the provided hourly wage. This is based on an assumption of 52 work weeks at 40 hours per work week.
Key form fields;
(HP)Hourly pay to salary
(No) Number of valid employees
The data is given as the input and after passing through certain a function, it will check and processes the data. The data will determine the total amount of wages an employer issues annualy.
5.Implementation
The calculator can also be used to ;
1.Compute hourly rate from the gross annual salary
2. Gross work hour per years
values relevant to the employer are keyed in to determine the total wages to be disbursed.
Fig 1.1 : annual income computation example
For instance, if project manager Q has to determine the number of employees to work with given the hourly rate of $200 . To determine total wages in an year ,
Annual salary=Hourly Wage⋅( number of hours worked per year)` * no of engineers
This computation is compared to the budget and used to make decisions such as limit of engineers that will be required.
6. Conclusion
To make informed decisions, they need to be data driven decisions. Making money investment decisions may be biased leading to financial constraints, making this calculator neccesary in such decision making.
7. References
Lake,A.(2021,May 19). Annual Compensation vs Annual Salary: What's the difference? https://www.investopedia.com/articles/personal-finance/120616/difference-between-annual-compensation-and-annual-salary.asp