Are you thinking about taking on a new part-time job?
Unlike full-time roles, most part-time jobs come with an hourly rate. So, you need to make sure you will earn enough to pay your bills before taking on this type of employment.
Moreover, while the hourly rate may seem good at first, it doesn’t tell the full story. You need to work out how much your take-home pay will be and if it will cover your bills.
So, let’s find out, $14 an hour is how much a year?
The Annual Salary
If you work forty hours a week, you can expect to make a little over $29,000 annually. However, this figure assumes that you work forty hours a week every week of the year. And the reality is that you are likely to make a few thousand dollars less than this each year. Due to sickness, and all sorts of unpredictable life events.
Your Monthly Salary at $14 an Hour
It’s a good idea to work out how much you can expect per month. This is particularly important if you have rent and other bills to cover on a monthly basis. Because you need to make sure you will earn enough to cover all your expenses and still, hopefully, have a little left over.
If you work forty hours per week, you should make around $2,400 per month if you work 173 hours (4 weeks plus a couple of days in most months). However, the exact figure depends on the exact number of days in each month. So, you need to take this into account when working out your budget.
Your Weekly Salary at $14 an Hour
If you work forty hours a week, you can expect to earn $560. However, most companies that provide hourly rates actually employ staff less than this. In fact, the average number of hours worked in a week is generally 37.5, rather than 40.
This is because…
One factor that is easy to overlook when calculating your salary is meal breaks. While many companies pay employees for meal breaks, there’s no law to mandate this. So, if you take an unpaid thirty-minute meal break in an eight-hour shift, this cuts into your salary. It also means that you would get paid for only 37.5 hours each week.
Finally, you also need to carefully examine your company’s policy on tardiness. Some companies deduct the number of minutes employees arrive late from their salary. In some cases, you could be deducted a full hour’s salary for arriving just ten minutes late.
You’d be surprised how many bosses do that…
Your Daily Rate at $14 an Hour
Working out how much you can expect to earn per day is, of course, a much easier calculation. If you work eight hours a day, you can expect to earn $112 each day. If you work less than this, simply multiply the number of hours you work per day by fourteen.
Why is it important to know your daily rate?
If you are having trouble working out a budget, knowing your daily rate can help. Start by making a list of all the things you spend money on each day. Don’t forget to assign a daily percentage that covers your rent or mortgage and your utility bills. As well as, ideally, at least a small percentage you want to save for the long term.
From there, work out your maximum to spend a day and only keep that amount in your wallet. Deduct the percentage for rent and bills every day and put it in an envelope somewhere safe, and never touch it.
Until, of course, the day comes when you pay those bills – but then you have it ready. Also, deduct your savings percentage and put it in a separate envelope. Again – don’t touch it. Just make a habit of putting it in your savings account at the end of each week.
Whatever else is left in your wallet, you can spend that day.
And trust me…
With a little time and diligence, if you train yourself to operate like this, you can manage your finances more effectively and responsibly.
Before accepting any job, it’s a good idea to look around. Depending on your qualifications, you might be able to make much more in another role. However, you might find that other employers pay much less for similar roles.
The minimum hourly pay
The minimum wage varies slightly in different states and areas of the United States. According to federal law, the mandated minimum wage is $7.25 per hour. So, when compared to the minimum wage, $14 might not seem too bad.
However, many states have elected to enact higher minimum wage laws to cover the cost of living. These hourly rates change fairly regularly, and you need to do a little research. So, make sure you review the hourly wage requirements in the county you live in before accepting a new job.
Other hourly wages
The average annual salary in the United States is a little over $58,000. This breaks down to around $28 per hour if you work full-time. This means that $14 per hour is roughly half the national average. While this figure is before taxes and other deductions, it’s an important fact to bear in mind when negotiating a reasonable salary.
The Impact of Overtime
You can boost your salary by taking on overtime. And this can be particularly lucrative if you work part-time. Plus, in addition to making more money, you will also show that you’re a team player. In fact, regularly taking on overtime can quickly set you up for a pay rise and maybe even a promotion.
Who gets this?
The Fair Labor Standards Act states that all non-exempt employees are entitled to overtime pay. This is calculated at 1.5 times the usual rate for any hours worked per week above forty. However, meal breaks and other breaks taken during shifts don’t usually count toward these calculations.
So, for every overtime hour you work, you can expect to receive $21. This can help to pad out your paycheck and cover your expenses more easily. However, it’s important to make sure that you are being correctly compensated for the overtime you work.
The Take-Home Pay
All of the calculations that have been made so far reflect the pre-tax income. However, you also need to calculate the take-home pay. This is the amount of money you’ll end up with after paying your taxes. The exact calculation can be a little tricky because it depends on a number of different factors.
This includes the amount of overtime you do each month, the state you live in, and the set state tax. In states like Washington, Alaska, and Florida, there is no state tax.
This means that your take-home pay would be around $25,000 annually. However, the cost of living tends to be a bit higher in these states than in states like Ohio and Montana.
This tax contribution is used to fund Medicare and Social Security. Even if you collect Social Security, you will be expected to pay FICA tax if you have a job. However, the amount of FICA tax depends on how much you earn. And at $14 an hour, you likely won’t need to worry about this.
Federal income taxes and marginal tax brackets
Generally speaking, the more money you earn, the more you are expected to pay in taxes. Therefore, it can sometimes work in your favor to take on a lower salary. So, it’s essential to understand the amount you are expected to pay and deduct it from your take-home pay.
If your hourly rate is $14 and you work full-time, you will usually be placed in the 12% tax bracket. However, your tax bracket may change if you have an additional income source. And taking on numerous overtime hours could put you into a higher tax bracket for some of your earnings. In this case, you may be expected to pay 22% in tax.
State income taxes
In some states, a flat income rate is equally applied to everyone who has a job. The main issue with this is that people who earn a higher salary can have an unfair advantage. In other states, individual flat tax rate structures have been adopted.
And then there are certain states where there is basically no income tax. However, in these states, the property tax or sales rate tax tends to be much higher. So, again, it is important to take these rates into account when working out your take-home pay.
States without income taxes include:
- South Dakota
- New Hampshire
Budgeting for Your Salary
Once you have worked out your take-home pay, it’s time to create a budget. You can either make a monthly or annual budget, depending on which you find easier. Some people who are inexperienced with budgeting may also find it easier to start with a weekly budget.
Or even the daily budget suggested above…
But the key to creating a budget that you can stick to is being honest about your spending. It is, therefore, a good idea to write down everything you spend money on within the space of a month. This includes your morning coffee and any other treats you indulge in.
You then need to check your list of all the things you spend money on and assign a percentage of your budget. You will probably find it easier to lump certain types of spending into categories. Then, you can assign a percentage of your income to each category along with an amount in dollars if you want.
A sample budget could look like this:
- Rent/mortgage – 30%
- Food – 15%
- Utilities – 5%
- Transportation – 10%
- Insurance – 15%
- Entertainment – 10%
- Personal expenses – 5%
- Savings – 10%
Want More Tips and Calculations?
We aim to support all those working hard to make a living. So, if you want to dive deeper into your potential earnings, start by reading more about Salary vs Hourly Pay.
Then, have a look at How to Answer Desired Salary questions in any upcoming interviews, such as What are Your Salary Expectations and what to say when a new employer asks you, What Is Your Current Salary?
And if financial terms are giving you a pain in the…
Don’t stress; we’re here to help! Find out anything you may need, from What Is Gross Monthly Income, What Does Competitive Salary Mean, What is Freelancing, Annual Net Income: Definition and How to Calculate, What Is A Gig Economy, and more!
Simply search our website!
Not saving anything, no matter how hard you try?
Then why not take a look at these Legit Online Side Jobs or How to Make Money on Instacart? Or how about these Top Easy Jobs That Pay Well, and the Best Remote Jobs That Pay Well?
Or maybe you’re interested in High-Paying Medical Jobs You Can Do With Little Schooling or High-Paying Tech Jobs You Can Get Without a College Degree in 2023!
Ok, back to today’s hourly pay calculation…
So, you now know that if your hourly rate is $14, the annual salary will be approximately $29,000. This figure assumes that you work forty hours a week, which is rarely the case with part-time jobs. But if you work less than forty hours a week, you can boost your income by taking on overtime.
And when working out your annual and monthly salaries, you need to make certain deductions. While some companies pay employees for meal breaks, this isn’t always the case.
However, the good news is that your earnings won’t be high enough to make you responsible for paying FICA taxes!
Good luck and happy earnings!