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Adjust your yearly income. Add hours to your calculation if you work overtime. Subtract hours from your calculation if you receive paid time off.
If applicable, add any additional money stemming from your job to your yearly salary total. This can include tips, bonuses, work-based incentives, etc. Any bonuses or extra work-based incentives you expect to receive should be added directly to your yearly total as well. If you happen to work a salaried position where you also receive tips, the process becomes a bit more complicated. Keep track of your tips for several weeks or even months, and divide the total by the number of weeks you have been tracking the data. This will give you an average tip total per week. Multiply this number by the number of weeks you will earn tips for the year, remembering to subtract weeks where you won't earn tips such as when you are on vacation. The rule of thumb for calculating tips is that the more weeks you can use to tabulate your average, the more accurate it will be. For overtime pay, multiply the number of overtime hours you worked by the rate you receive for additional work, and then add this total to your yearly salary. Your overtime hours can be either paid or unpaid depending on your position. Add the additional hours worked regardless. Example: Say you work an average of an extra two hours every week except when you are on leave, which is two weeks every year. Your extra hours are 2 hours x 50 weeks = 100 hours per year. In this example, your adjusted hours worked per year would be: 2080 + 100 = 2180 Add together the number of hours you take off work each year and subtract this number from the total number of hours you worked in the year. Remember to include holidays, sick leave, special leave, and any time when you start late or finish early. Remember only to include paid time off that you will actually use. As an example, you may have accrued two weeks of sick time, but you also aren't likely to use all of it. For example, say that you take two weeks of paid vacation every year, that you are never sick, and that you always leave one hour early on Friday afternoons. Your reduced hours would be (8 hours x 2 weeks) + (1 hour x 50 weeks) = 66 hours per year. Your adjusted hours worked per year for this example would be: 2180 - 66 = 2114