Gross pay is the total amount an employee earns before any deductions, such as taxes or benefits, are taken out. Calculating it correctly is essential for accurate pay stubs and payroll records.
Step 1: Identify the employee’s wage type
- Hourly employee: Gross pay is based on the number of hours worked multiplied by the hourly rate.
- Salaried employee: Gross pay is calculated based on the annual salary divided according to the pay schedule (weekly, bi-weekly, semi-monthly, or monthly).
Step 2: Include all additional earnings
Add any extra payments to the base pay, such as:
- Overtime
- Bonuses or commissions
- Tips or incentives
- Holiday or special pay
Step 3: Calculate gross pay
Hourly employee example:
Hourly rate × Regular hours worked + Overtime pay + Bonuses = Gross pay
Salaried employee example:
Annual salary ÷ Number of pay periods per year + Bonuses + Other extra earnings = Gross pay
Step 4: Verify before finalizing
Double-check that all hours, bonuses, and additional earnings are included. Accurate gross pay ensures that taxes, deductions, and net pay are calculated correctly.
Using SecurePayStubs
When you enter salary or hourly information, pay schedule, and hours worked in SecurePayStubs, the gross earnings are automatically calculated. You can then add any additional earnings in the Earnings section before generating the pay stub.
Last modified: March 9, 2026
