Annual (unadjusted)
$62,400
Adjusted for vacation: $59,952
Conversion table
| Frequency | Unadjusted | Adjusted |
|---|
References
FLSA exempt salary threshold (2025): $58,656/yr ($1,128/wk). Standard work year: 2,080 hrs (40 hr × 52 wk).
A unit converter for income. Hour to year and back, with the FLSA exempt threshold and 1099 reverse math.
| Frequency | Unadjusted | Adjusted |
|---|
FLSA exempt salary threshold (2025): $58,656/yr ($1,128/wk). Standard work year: 2,080 hrs (40 hr × 52 wk).
Pay frequency is a packaging detail; the underlying compensation is the same. The math is unit conversion: divide annual by the periods per year (52 weekly, 26 biweekly, 24 semi-monthly, 12 monthly). For hourly workers, multiply hourly rate × hours per week × 52. The complication is "adjusted" vs "unadjusted" — whether unpaid time off is subtracted from the headline number.
2,080 hours — standard US full-time work year (40 × 52)260 work days — standard year (5 × 52)Paid days — 260 minus unpaid vacation, holidays, sick days| Item | 2026 amount | Source |
|---|---|---|
| FLSA exempt salary threshold (federal) | $684/wk · $35,568/yr | 2019 final rule (post-Plano) |
| Highly Compensated Employee threshold | $107,432/yr | 2019 final rule |
| Federal minimum wage | $7.25/hr | FLSA, unchanged since 2009 |
| Social Security wage base | $182,400 | SSA Oct 2025 announcement |
| FICA rate (W-2 employee share) | 7.65% | SS 6.2% + Medicare 1.45% |
| Self-employment tax | 15.3% | IRS Schedule SE — both halves of FICA |
| Additional Medicare surtax | +0.9% over $200k single | ACA, IRC §3101(b)(2) |
| Standard work year | 2,080 hours · 260 days | OPM / federal payroll convention |
Contractors pay both halves of FICA (15.3% vs 7.65%), buy their own health insurance ($600-$1,500/month for individual ACA), receive no employer 401(k) match (typically 3-5% of salary), no PTO, and pay quarterly estimated taxes. To match an $80,000 W-2 with full benefits, a 1099 contract usually needs $100,000-$110,000 gross. The deductible portion of self-employment tax (half of SE tax under IRC §164(f)) softens this slightly.
The federal $684/week FLSA exempt threshold is a floor. California ($68,640), New York ($62,400-$58,500 by region), Washington (~$77,968), and Colorado (~$58,500) impose higher salary thresholds for white-collar exemption. The applicable threshold is whichever is highest. A misclassified employee can recover up to 3 years of unpaid overtime plus liquidated damages — a $25,000 retroactive bill on a single misclassified $50K salaried role.
For 2026, Social Security tax (6.2%) applies only to the first $182,400 of wages — anything above is exempt. Medicare (1.45%) has no cap, plus the 0.9% Additional Medicare surtax kicks in above $200k single / $250k MFJ. So a $300k single earner pays SS only on $182,400 (saves ~$7,300 vs uncapped) but owes the surtax on $100k. Common confusion: the wage base is per-employer, so people with two W-2 jobs over $182,400 combined recover excess SS via Form 1040.
Sources: DOL Wage & Hour Division 29 CFR Part 541 (FLSA exemptions); 2019 DOL final rule (84 FR 51230) following Plano Chamber of Commerce v. DOL (E.D. Tex. Nov 15, 2024) vacating the 2024 rule; SSA Press Release (Oct 2025) for 2026 wage base; IRS Pub 15 / Pub 15-A (employment tax); IRC §3101 (FICA); IRC §1401 (SE tax); state DOL rulemaking for state-specific exempt thresholds.
Multiply hourly by hours per week × 52. Standard full-time work year = 2,080 hours. At $30/hr × 40 × 52 = $62,400 unadjusted. To "adjust," subtract unpaid time off — 10 vacation days + 8 federal holidays unpaid means 242/260 paid days, so adjusted = $62,400 × (242/260) = $58,063. Most W-2 employees with paid PTO have unadjusted = adjusted.
Unadjusted assumes you're paid for 52 weeks at the full rate. Adjusted subtracts unpaid time — vacation, unpaid holidays, sabbaticals. For salaried W-2 employees with paid PTO, the two are identical because the employer's PTO policy is already baked in. The distinction matters for hourly, contract, and gig workers.
2,080 is the US standard — 40 hours × 52 weeks. Used by federal payroll, OPM, and most private employers for hourly-to-salary conversion. The IRS uses 2,000 hours in a few specific contexts (e.g., 1,000-hour pension eligibility threshold). For salary conversion, 2,080 is correct: $100,000 ÷ 2,080 = $48.08/hour.
Federal: $684/week ($35,568/year) under the 2019 final rule. The 2024 DOL rule that would have raised this to $58,656 (Jul 2024) and $1,128/wk (Jan 2025) was vacated nationally by the Eastern District of Texas in November 2024 (Plano Chamber v. DOL). Several states impose higher thresholds — California $68,640, NY $58,500-$62,400, Washington ~$77,968 — which apply when stricter. HCE threshold reverted to $107,432.
A 1099 needs roughly 25-30% more gross to match a W-2's take-home. 1099s pay 15.3% SE tax (vs 7.65% W-2), buy their own health insurance ($600-$1,500/mo), get no employer 401(k) match (3-5% of salary), no PTO, pay quarterly estimates. To match an $80,000 W-2 with full benefits, a 1099 contract typically needs $100,000-$110,000.
Federal Insurance Contributions Act payroll tax. W-2 employees pay 7.65% — Social Security 6.2% (capped at $182,400 in 2026) and Medicare 1.45% (uncapped). Employer matches. Self-employed pay both halves (15.3%). Wages above $200k single / $250k MFJ owe an additional 0.9% Medicare surtax under the ACA.
Federal: $7.25/hour, unchanged since July 2009 — the longest period without an increase in the law's history. 30+ states and many cities mandate higher: California $16.50, Washington $16.66, NYC $16.50, Florida $13 (rising to $15 by 2026), Massachusetts $15.50. Applicable minimum is the highest of federal, state, or local. Tipped employees in 27 states have a separate cash wage (federal $2.13).
Biweekly pays every 14 days = 26 paychecks/year. Semi-monthly pays twice per month (1st and 15th) = 24 paychecks. Same annual but biweekly checks are smaller (annual ÷ 26 vs ÷ 24). Twice a year, biweekly employees get three paychecks in one month — useful for an extra savings push. Semi-monthly aligns better with monthly bills; biweekly is more common in hourly payrolls.
Negotiate the metric the employer uses. Always annualize before comparing offers — a $32/hr offer with no benefits is worse than a $28/hr offer with 401(k) match, health, and PTO. Total compensation matters more than the headline rate. Reverse-convert: $120K/yr = $57.69/hr fully-loaded, ~$48/hr after FICA and benefits.
Three layers: (1) federal income tax withholding per W-4; (2) FICA (7.65% on wages up to $182,400, then 1.45% only); (3) state income tax (0% in 9 states); (4) pre-tax voluntary — 401(k), HSA, FSA, health premium. A $100k single W-2 in a no-tax state typically takes home $72,000-$76,000. The Paycheck calculator does the full breakdown.