Expert: Shirley McAllister, CPP, PHR - 9/4/2008

Question
Hi,sorry if its homework question. I'm new in HR and doing payroll my husband just opened a store so that how i managed to be the HR Manager. His business patner showed me how to do the salary calculations. I print the time sheets from the clocking machine, i manually count hours they worked each day from 1st day to the last day of the month. We are suppose to pay the people R10 an hour, but now i'm worried coz some of their payslips doesn't show a rate of R10 but less.

The people are suppose to work 45hrs a week and 195 a month. Now if you multiply 45 x 4 (4 weeks in a month) it gives 180 not 195, you have to multiply by 4.3333 which i dont know where it come from.

Can you kindly assist me with this.
Thank you
Noluntu

Answer
The 195 comes from this formula:

52 weeks in a year X 45 hours in a week is equal to 2340 in a year divided by 12 months is 195 hours per month.

The variance is because some months have more than 4 weeks. What you are doing is averaging over a years time so you are paying the same each month.

If you are supposed to pay R10 than you must ensure that is what you are paying.

Shirley