Arizona paycheck calculator employers use for hourly paychecks
At the top of this page, employers can use an Arizona paycheck calculator to double-check calculations for hourly employees, ensuring they get the right take-home pay. Below is more information about how writing paychecks differs for salaried employees and hourly workers.
How is Payroll Different for Hourly and Salaried Employees?
Ultimately, the process of running payroll is quite similar, regardless of the type of employee. You start with their gross wages (or how much money they’ve earned in a given pay period) and withhold local, state, and federal payroll taxes, plus any additional payroll deductions for items like health benefits, retirement plans, or garnishments.
The journey from gross wages to net wages (or take-home pay) doesn’t really change much. The primary difference in payroll for hourly and salaried employees is how those gross wages are calculated in the first place.
Gross Wages for Hourly Employees
For workers whose compensation is based on the hours they work, gross wages are calculated by multiplying the number of hours worked during a pay period by their hourly pay rate.
It’s generally straightforward, but a number of states have overtime laws that can increase an employee’s pay rate if they work more than a certain number of hours in a day (typically 8 hours) or in a week (typically 40 hours). Make sure to account for these nuances when you calculate paychecks for hourly workers.
Gross Wages for Salaried Employees
For employees who are paid an annual salary, gross pay is calculated by dividing their annual salary by the number of pay periods in a year. For example, if an employee earned an annual salary of $100,000, this is what their gross wages would be for different pay frequencies (assuming no other pre-tax deductions):
| Pay Schedule | Gross Wages (Based on $100k Salary) |
| Weekly (52 pay periods/year) | $1,923.08 |
| Bi-Weekly (26 pay periods/year) | $3,846.15 |
| Bi-Monthly (24 pay periods/year) | $4,166.67 |
| Monthly (12 pay periods/year) | $8,333.33 |
To understand more about choosing different pay schedules, here is a detailed look at the issue. Beyond also has an Arizona salary calculator you might find helpful.
Who Should Be Salaried and Who Should Be Paid Hourly?
When hiring, employers have some discretion to choose who is paid hourly and who is paid a salary. Typically, employees whose hours are consistent or fixed, and those at higher compensation levels, are offered a salary. Employees at lower compensation levels whose hours are more variable tend to receive an hourly paycheck.
However you choose to handle compensation, there are a few rules that must be followed—most notably the rules for exempt and non-exempt employees under the Fair Labor Standards Act (FLSA). In a nutshell, the FLSA states that employees should be entitled to overtime pay when they work more than 40 hours in a week, unless they are “exempt” and fit into one of these categories:
– They are an executive;
– They offer skilled professional services;
– They have administrative or management responsibilities;
– They are highly compensated (earning more than $151,164 per year in 2025);
– They are a computer programmer or analyst;
– They have an outside sales role.
There are a number of other minor exceptions. Take a closer look at the classification of exempt and non-exempt employees or reach out to an employment or tax professional if you have more questions.
Getting from Gross Wages to a Paycheck
Once gross wages are determined, it’s time to calculate the actual payroll by withholding federal, state, and local payroll taxes and applying any other applicable deductions. This process works essentially the same for all employees, whether they are salaried or hourly. See more on calculating payroll taxes if you want to get into the fine details.
Finished using the paycheck calculator Arizona employers trust? Here are more resources that may be helpful:
AZ State Minimum Wage: $14.70 in 2025.
Is Workers’ Comp a Requirement? Yes for certain employers—find out more in our workers’ comp guide for Arizona.
New Hire Reporting Required? Yes.
2025 SUI Rate (State Unemployment Insurance):
– Taxable wage base: $8,000
– Rates range from 0.04% – 9.72% in 2025
– Tax rate for new employees: 2%
This article (and the mentioned paycheck calculator tool) is provided for informational purposes only and should not be relied on for tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors for formal consultation and final payroll numbers.