1.1 Hourly Pay and Salary

1.1 Hourly Pay and Salary Calculate gross pay for hourly-rate employees Calculate gross pay for salaried employees Lesson 1.1

Gross Pay for Hourly-Rate Employees • Those who work for others are called employees. • The person or company an employee works for is called an employer. • An employee who is paid by the hour works for an hourly rate, which is a certain amount for each hour worked. • The total amount of money that an employee is paid is called gross pay or gross wages. Lesson 1.1

Gross Pay Calculation • The gross pay earned by employees who are paid by the hour is found by multiplying the pay per hour by the hours worked. Hourly Rate × Number of Hours Worked = Gross Pay Lesson 1.1

Gross Pay for Salaried Employees • Some employees are paid a salary, which is a fixed amount of money for each time period worked. • They are referred to as salaried employees. Lesson 1.1

Gross Pay Calculation for Salaried Employees • To find their gross pay, multiply their pay for a time period by the number of time periods worked. Pay per Time Period × Number of Time Periods Worked = Gross Pay Lesson 1.1

1.1 Hourly Pay and Salary