When calculating your direct labor cost on time slips, we use the actual pay rate of hourly employees or the equivalent hourly pay rate for salaried employees.
The equivalent rate is a staff member's annual salary divided by their annual work hours. Our system will use 2080 hours unless you specify otherwise. A yearly salary of $80,000 will have an equivalent hourly rate of $80,000 / 2080 = $38.46
This calculation is based on the 40-hour work week. Feel free to adjust the annual hours for any of your employees.