Salaried staff gross wages do not add up to the correct yearly wage

[PVFarms]

We have several salaried employees and every single one of them has this issue, including me.  I have followed the instructions for setting up salaried employees.  I entered the yearly wage & set 40 hour work weeks.  Everyone is exempt from overtime.

When I did my first two payroll runs, we immediately noticed that the gross pay is wrong for everyone.  One salaried employee makes $36,000 per year.  Her gross pay for the month (160 hours), according to Square is $2,769.60.  If you multiply that by 12, she's only making $33,235.20 a year.  Every salaried employee shows the same discrepancy.

From what I read, Square seems to take the annual pay & covert it to an hourly rate based on a 52 week per year schedule, but that doesn't seem to make sense for salaried employees.  An employee making $36,000 a year should show a monthly gross pay of $3,000 per month.  Payroll is run bi-monthly so each check should show a gross pay of $1,500.  But that's not what's happening and I need to fix it ASAP.  Right now all my salary people, myself included, are being underpaid.

How do I fix this??  We're just starting with Square Payroll and now I'm questioning whether or not we'll continue with it.  Salaried wages should be extremely simple & I've never used a service that had problems like this.

[frances_a]

This sounds like a good question for our Payroll team, @PVFarms

They can take a look at your account with you to help shine a light here, as they are able to look at your account alongside you in order to pinpoint what’s going on here. Please reach out by phone or email when you have a moment by logging into your Square account and heading here.

Thank you!

[Candlestore]

@PVFarms ,

$36,000 a year paid bi-weekly would not be $1500 a pay check.

$36,000 a year divided by 12 months is $3000 a month.

$36,000 divided by 24 paychecks (2 a month is $1500 a paycheck)

The math you need to do is

$36,000 divided by 26 (number of paychecks)     

  There are 52 weeks in a year so therefore every other week is half of 52 or 26 paychecks in a year.

So $36,000 divided by 26 paychecks would be a salaried bi-weekly gross pay check of $1,384.61538 (I put extra places on the end for you to round).   This doubled in a month with 2 paychecks would be $2,769.230769. Now in 2 months out of the year your salary people will get 3 pay checks of $1,384.61538 or so which will equal $4,153.84615 in those 2 months. 

Hope this makes sense