- 1). Review your pay stubs for the previous year to determine how much overtime you worked. If you work a lot of overtime you could end up making less as a salaried employee, since you will no longer be eligible for overtime pay. If this is the case you may want to speak with your supervisor and see if you can remain in an hourly status.
- 2). Determine your annual salary level after you make the transition to salaried status. Your boss should be able to give you this information.
- 3). Divide the amount of your annual salary by the number of pay periods to get your gross pay per pay period. If you get paid twice a month you have 24 pay periods. If you are paid every other week you have 26 pay periods. When you are a salaried employee your gross pay remains the same, regardless of the number of hours you work.
- 4). Create your budget based on the pay you expect to receive, minus deductions for taxes, health care and other factors. If you are simply transitioning from hourly status to salaried with no increase or reduction in pay rate, your budget should remain much the same. If you are used to working a lot of overtime, you may have to adjust your budget, since that overtime pay will no longer be available.
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