Employee Salary Frequency and Automatic Calculation in Friday #
Supported Salary Frequencies #
Employee salaries can be set using the following pay frequencies:
- Weekly
- Biweekly
- Monthly
- Semimonthly
- Quarterly
- Yearly
Automatic Salary Calculation #
Friday automatically calculates the amount to be paid to employees based on the set salary frequency and the actual pay period. This ensures accurate and consistent payments regardless of the chosen salary frequency.
Example Calculations #
- Yearly Salary Example:
If an employee’s salary is set to $120,000 per year:
– When paid monthly, Friday will automatically calculate and pay $10,000 per month.
– When paid weekly, Friday will divide the yearly salary by the number of weeks in the year to determine the weekly payment.
- Weekly Salary Example:
If an employee is set to be paid weekly:
– If a biweekly payroll is processed, Friday will automatically double the weekly amount to cover the two-week period.
Summary Table #
| Salary Frequency | Example Salary | Pay Period | Calculated Payment |
|——————|—————|————|——————-|
| Yearly | $120,000 | Monthly | $10,000 |
| Yearly | $120,000 | Weekly | $2,307.69 |
| Weekly | $1,000 | Biweekly | $2,000 |
Assuming 52 weeks in a year: $120,000 ÷ 52 ≈ $2,307.69 per week.
Key Points #
- Friday automatically adjusts salary payments based on the pay period, regardless of the original frequency set.
- This system ensures employees are paid the correct amount for any given period, whether the salary is set as weekly, biweekly, monthly, semimonthly, quarterly, or yearly.
