Financial Advisory Blog

Armanino’s Financial Advisory blog is your source for thought leadership around cloud ERP and accounting solutions and integrations. Supported by the Cloud Accounting Institute and numerous experts in cloud, finance, reporting, integration, compliance, and technology, Armanino’s Financial Advisory blog features must-read content on what’s happening in the finance industry, case studies, white papers, and much more.

July 23, 2020

Does a wage reduction in excess of 25% for hourly employees mean the hourly wage is increased by more than 25%?

Posted by Armanino Financial Advisory Team

As it happens, “reductions” are the diametric opposite of “increases”. A wage reduction in excess of 25% means that the employee was paid at a rate that was less than 75% of what their hourly wage had been previously. That means their pay went down. Conversely, if their hourly wage was increased by more than 25%, that means their pay went up. Since what we are talking about here is the Salary Reduction Factor, we only want to focus on people who had a reduction. There is no Salary Increase Factor that you have to calculate for forgiveness, though any such employees would likely be happier.

« | »