Many people focus on the salaries for certain jobs, particularly when it comes to entry level. But what about starting salaries? For example, you might ask what would be a good salary for a beginner nurse.
The answer is fairly straightforward: $57,000/year. What many people don’t realize though is that this salary doesn’t mean how much they’ll make an hour; it means how much they’ll make in their first year of work. As beginners progress through their career, the salary will grow accordingly (though keep in mind that the cost of living increases over time too).
This is simply how much a beginner would make in their first year – plus any benefits that might be offered by the employer. It’s important to note that a starter salary for most jobs will not be enough for someone to live on their own.
The reason is that even if it takes one person five years to earn a million dollars (which is pretty rare), the salary will have grown by the time they get there. So it might be more accurate to say how much the person would earn in their first two or three years – plus any benefits.
How to calculate a salary in thousands is how much in an hour ?
1. Divide one by the number of hours worked each year (so if someone worked a standard 40-hour workweek, that would be 2080 hours per year).
2. Divide the yearly salary by this figure. So in the example above, it would be $57,000/2080 = $286.96/hour.
3. Add any benefits to this figure; some common benefits include health insurance, 401Ks and paid vacation time. These aren’t included in the $57,000 because they aren’t guaranteed; they are bonuses that will be given at a later point in time.
The reason why people don’t just divide by the actual number of hours worked is because they want to know what they could be making in the future. Each year, the cost of living increases; so if you divide a salary by 1300 hours (2080 hours/5 years), you’ll end up with a much smaller figure. By dividing by 1 instead, your figure will remain constant.
Now, one thing to keep in mind is that this is only for beginners; you wouldn’t expect someone who’s been there for 10 years (and thus has a lot more experience) to make this amount. So while this is how much you would make in your first year, do not expect to see similar figures for each subsequent year.
Some points discussed about this topic :
1. This is for entry level positions.
If you are in a higher paying field, such as engineer or lawyer, then the amount will be higher. One definite difference is that the average engineer will make around $180,000 in their first year of “job” working at a large company(with health insurance and vacation time etc.). For the lawyer, the average at big corporate law firms is $280,000.
2. Book value of 58k
58 thousand a year means how much in an hour?Yes, for example in my business if we divide 58 thousand by 60 hours work per week means $18.5 per hour. That’s what our employee will earn each year. Salary amount depends on the position and location you are applying for. There are many jobs that have small salaries plus various benefits especially for foreigners.
3. The figure also assumes that you work full-time.
And this is your only job, which means no overtime or second jobs (e.g., Lyft). It also assumes that you are a U.S citizen and don’t qualify for any benefits such as non-resident alien tax credit or dependent care tax credit .
And this is based on standard deduction and exemptions, not itemized deductions and personal exemptions (which are usually higher than the standard deduction).
4. What about the self-employed?
If you’re a freelancer or self-employed, you don’t get to take advantage of benefits. This means no health insurance or paid vacation time. You are paying both halves of Social Security and Medicare taxes, plus taking care of your own retirement fund (401K).
In many ways, being self-employed is harder than working for someone else because you are always responsible for your own well-being. You do not have a team of specialists looking out for you; it’s all on you.
5. How about taxes?
Does this amount count your tax liability? Not quite. This amount takes out the amount you would be taxed on. And depending on your situation, you could be in the 15% tax bracket or as high as 39.6% tax bracket.
So what is a lot of money in terms of salary might leave you with little in your pocket after taxes and other expenses (whereas if you were employed, your employer would take care of paying for taxes). The main reason to pay those taxes is that it’s part of the social contract – and it helps pay for public services, such as roads and schools.