2) Example 2: Paid semi-monthly and work hours vary

The customer reports that their new work hours will vary between 20 and 25 hours per week. Their pay rate is $8.25 per hour and that will not change. To forecast the new pay amounts:

Add the range of hours to get the average weekly hours: (20 + 25) = 45. Divide by 2 = 22.5 (Expected averaged weekly hours).

Multiply by 2.15 to get the average hours per pay period (22.5 x 2.15) = 48.37 (Expected average semi-monthly hours)

Multiply by the pay rate to get the new expected semi-monthly pay rate (48.37 x 8.25) = $399.05