How to Calculate the Per-day Payroll Rate

Nearly every business owner wants to keep track of his expenses. It can at times prove fruitful to break down costs by month, by week or even by day. Payroll is a fundamental business expense. During periods of economic or industry slowdown, analyzing payroll costs can help you make temporary or permanent staffing decisions. Similarly, during boom times, keeping an eye on staffing costs helps ensure you don't go overboard with hiring.

  1. 1.

    Get the total yearly salary amount from your payroll processor or human resources department for the employee or for the department for which you wish to calculate the per-day payroll rate.

  2. 2.

    Divide the employee's or department's total yearly pay by the number of pay periods. If your pay dates are weekly, divide the number by 52. If you pay biweekly, divide by 26. For semi-monthly or monthly payroll, use the number 24 or 12, respectively, in your division calculation.

  3. 3.

    Divide the result from Step 2 by the number of workdays per pay period to arrive at the employee's or department's per-day payroll rate.