What is Regular Pay?
Regular pay refers to the base pay or salary that an employee receives on a regular basis for performing their job duties. It is typically a fixed amount that is paid out on a predetermined schedule, such as weekly, bi-weekly, or monthly. Regular pay does not include any additional compensation or benefits that an employee may receive, such as bonuses, overtime pay, or commissions pay. It is simply the base amount that the employee is entitled to receive for their work, as specified in their employment contract or agreement.
What is Retro Regular Pay?
Retro regular pay refers to the payment of regular wages or salary that an employee is owed for work that was performed in a previous pay period but was not paid in that period. This can occur when there is a delay in processing payroll tax, or when an employee’s pay rate is adjusted retroactively, such as when a collective bargaining agreement is ratified.
Retro regular pay is usually paid as a lump sum in a subsequent pay period, separate from the employee’s current regular pay. Employers are required to pay retroactive wages or salary owed to their employees in a timely manner, in accordance with local labor laws and regulations.
How to Calculate Regular Pay?
Calculating regular pay depends on several factors, such as the employee’s pay rate, the number of hours worked, and the pay period. Here are the steps to calculate regular pay:
Determine the employee’s hourly rate: Divide the employee’s annual salary or monthly salary by the number of hours worked in a year or month, respectively.
Determine the number of hours worked: Calculate the total number of hours worked by the employee during the pay period, including any paid time off or vacation days.
Multiply the employee’s hourly rate by the number of hours worked: Multiply the employee’s hourly rate by the number of hours worked to calculate the regular pay for the pay period.
If the employee has any deductions or taxes, subtract them from the regular pay: Deduct any applicable taxes, Social Security tax, Medicare tax, or other deductions from the regular pay to arrive at the net pay.
Also, See: Gross Pay | Net Pay | Overtime Pay | Base Pay | Incentive Pay