When it comes to working out someone’s salary, the annual figure is often the first thing that comes to mind. However, it is important to consider how an annual salary translates to an hourly wage, as it can provide a clearer picture of what a person is earning for the time they put in at work.
So, I decided to explore the question of “$35,000 a year is how much an hour?” and examine the factors that can impact a person’s hourly wage. I will also discuss how an hourly wage is calculated, what the standard hourly wage is, and how it varies from one job to another.
So, let’s get started with…
- Calculating Hourly Wage
- How To Calculate?
- What About Independent Contractors?
- Factors that Impact Wages
- Frequently Asked Questions (FAQ)
- Additional Info About Salaries
- Final Thoughts
Calculating Hourly Wage
To calculate an hourly wage, divide the annual salary by the number of hours worked per year. For example, if a person earns $35,000 per year and works 2,080 hours, their hourly wage would be $16.83. This is the most basic calculation method assuming the person works a standard 40-hour workweek for 52 weeks per year.
In reality, many people work overtime, on holidays, or on weekends, which can increase the number of hours they work in a year. Additionally, some jobs require employees to be on call or to work shifts, which can also affect the number of hours worked per year.
Standard Hourly Wage
The standard hourly wage is the minimum set by the government for all employees. In the United States, the standard federal hourly wage is $7.25 per hour. However, it is important to note that some states have set a higher minimum wage. For example, the minimum wage in California is $15.50 per hour.
How To Calculate?
When it comes to salaried wages, the calculation process is slightly different than that of hourly wages. Instead of being paid based on the number of hours worked, a salaried employee is paid a set amount weekly, biweekly, monthly, or annually.
To determine the wage, divide the $35,000 by the number of pay periods in a year:
1 Weekly Salaries
If the employee is paid weekly, their wage would be $673.08 ($35,000/52 = $673.08).
2 Bi-weekly Salaries
If the employee is paid every two weeks, their wage would be $1,346.15 ($35,000/26 = $1,346.15).
If the employee is paid monthly, the monthly wage would be $2,916.70 ($35,000/12 = $2,916.70).
What about Overtime?
It is important to note that salaried employees may be required to work more than the standard workweek without receiving overtime pay. So, if you are a job seeker, you may want to keep this in mind.
On the flip side, salaried employees are also more likely to be eligible for benefits such as health insurance, retirement plans, and paid time off. These can add value to the overall compensation package and should be taken into account when evaluating the salary. Whatever the case, the calculated wage must be higher than the legal minimum wage.
What About Independent Contractors?
It’s worth noting that the $35,000 a year figure could also apply to independent contractors or freelancers, who are not considered traditional salaried employees. These self-employed individuals provide services to clients on a project-by-project basis rather than being on a regular payroll.
In terms of calculating the hourly rate, the process is similar to that of salaried employees. Simply take into account the number of hours you are expected to work on the project and divide it by the agreed-upon pay. You should also think about the extra costs you’ll have as independent contractors, like buying your own tools, health insurance, and savings for retirement.
Factors that Impact Wages
Several factors can have an impact on hourly wages, including:
Education and Experience
Generally, the more education and experience a person has, the higher their hourly wage will be.
For example, a person with a doctorate and several years of experience in their field will likely earn a higher hourly wage than a person with only a high school diploma and little experience. This factor gives a person the skills and knowledge needed to perform a job well, which makes them more valuable to employers.
Industry and Occupation
Some industries, like finance and technology, tend to pay more per hour than others, such as retail and the service industry.
Similarly, some occupations, such as engineers and lawyers, tend to have higher hourly wages than, for example, cashiers and servers. This is because some industries and occupations require specialized skills and knowledge that are in high demand, making them more valuable to employers.
The location of a person’s job can also impact their hourly wage. Wages tend to be higher in urban areas than in rural areas, and also tend to be higher in certain states than in others.
For example, as mentioned, the average hourly wage in California is higher than the average hourly wage in Mississippi. This is because the cost of living in urban areas and certain states are higher, which means that employers need to pay higher wages to attract and retain employees.
Unionized workers tend to earn higher wages and have better benefits than non-unionized workers. This is because unions negotiate with employers on behalf of their members to secure better wages and benefits. They also tend to have more job security and better working conditions.
Gender and Race
Unfortunately, gender and race can also play a role. Studies have shown that, on average, women and people of color tend to earn lower wages than white men. This is known as the gender wage gap and the racial wage gap, respectively.
These are caused by a combination of factors, including discrimination and unconscious bias in the workplace, as well as differences in education and experience.
Overtime and Benefits
Some jobs offer overtime pay, which can increase a person’s hourly wage. Additionally, they can also offer benefits such as health insurance, retirement plans, and paid time off, which can also increase a person’s hourly wage. These can be especially valuable for workers who are earning a lower wage.
Working hours are also an important factor. Part-time workers often earn a lower hourly wage than full-time workers. This also means that they earn less money overall.
Additionally, some jobs require employees to be on call or to work shifts, which can also affect the number of hours worked per year.
Jobs with higher responsibilities tend to have a higher hourly wage than jobs with lower responsibilities. For example, a manager’s hourly wage is higher than that of a regular employee. This is because they have more responsibilities and require more skills and knowledge.
Supply and Demand
The balance of supply and demand in the labor market can also impact wages. When demand for a particular type of worker is high, wages will increase.
Government policies such as minimum wage laws can also impact wages.
Some companies are more willing to pay more for their employees based on their company culture and values.
The productivity of the worker also has an impact on wages, a highly productive worker is more likely to get higher wages.
Frequently Asked Questions (FAQ)
Is $35,000 a year a lot?
This depends on the location and cost of living. In some areas, $35,000 a year may be considered a low salary, while in other areas, it is decent enough. Generally, though, in the US, $35,000 a year is not considered a lot.
How much tax do you need to pay on a $35,000 annual wage?
A taxpayer filing as a single individual would fall into the 12% tax bracket but would only be required to pay a 10% rate on the first $10,276 of their income and 12% on the remaining amount. The total tax amount would be $1,027.6 (10% on the first $10,276) + $2,966.88 (12% on the remaining $24,724) = $3,994.48.
Can you get the tax amount reduced?
Deductions and credits are ways to reduce the amount of taxes you owe. Deductions lower your taxable income, while credits directly reduce the amount of taxes you owe.
Some common deductions for individuals include state and local taxes, mortgage interest, and charitable donations. Some examples of credits include the child tax credit and the earned income tax credit. Eligibility for deductions and credits depends on your income, tax filing status, and other factors.
Consult a professional…
It is important to note that the tax laws and the deductions and credits available can change from year to year, so it’s a good idea to consult a tax professional or use tax software to ensure you’re taking advantage of all the deductions and credits you’re eligible for.
Additional Info About Salaries
It’s always important to have insight when it comes to your pay, so check out our selection of guides such as How To Get A Pay Stub, what is the difference between Gross Pay vs Net Pay, and How Do I Convert Salary To Hourly To Calculate A Part Time Rate.
If you are applying for a new job, you might be wondering What Are Your Salary Expectations, and if so, then find out How To Answer Desired Salary and, if need be, How To Counteroffer Your Salary After A Job Offer?
Someone earning $35,000 per year can expect to earn an hourly wage of $16.83 if they work a standard 40-hour work week. It is important to understand the hourly wage and how it’s calculated, as it allows for a better understanding of the earning potential of a job and the fair compensation for the time and effort put in.
However, you need to keep in mind that the hourly wage is not the only thing that matters; benefits and other perks are also important to consider when evaluating a job offer.
Good luck with your job hunting!
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