1 / 13

Gross Pay

Gross Pay. Chapter 1. Terms (p.5). Employee : those who work for others Employer : the person or company an employee works for. Hourly rate : a certain amount of money paid for each hour worked.

lynley
Download Presentation

Gross Pay

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Gross Pay Chapter 1

  2. Terms (p.5) • Employee: those who work for others • Employer: the person or company an employee works for. • Hourly rate: a certain amount of money paid for each hour worked. • Gross pay: total amount of money that an employee is paid. Also called gross wages, total earnings or total pay. • Gross pay= Number of hours worked x hourly rate

  3. Check Your Understanding (p.5) • A: • G= 46 x $7.50 • G= $345 • B: • G= 25 x $16.25 • G= $406.25 • C: • 5x8=40 hours • G= 40 x $18.75 • G= $750

  4. Check Your Understanding (p.5) • D: • 8+6+7+6+5=32 • G=32 x $9 • G=$288

  5. Terms (p.6) • Overtime: time worked beyond the regular working day or week. • Regular working day: based on an 8 hour day • Regular work week: based on 40 hours • Time-and-a-half: overtime pay that is calculated by multiplying regular rate by time-and-a-half (1.5). • 1.5 x regular pay rate (do NOT round) • Double-time pay: earning twice your regular-time pay rate for working OT or weekends/holidays. • 2 x regular pay rate (do NOT round)

  6. Check Your Understanding (p. 7) • E: • $7.51 • 1.5 x $7.51=$11.265 • 2 x $7.51=$15.02 • $8.76 • 1.5 x $8.76=$13.14 • 2 x $8.76=$17.52 • $13.67 • 1.5 x $13.67=$20.505 • 2 x $13.67=$27.34 • F: • 1.5 x $11.25= $16.875 • 2 x $11.25= $22.50

  7. Check Your Understanding (p.7) • G: • M-9.75, T-8, W-6, TR-8.5, F-8 • Regular hours: 8+8+6+8+8=38 • OT hours: 1.75+.5=2.25 hours • Regular pay: 38 x $13.69 =$520.22 • OT pay rate: • 1.5 x $13.69=$20.535 • OT pay: 2.25 x $20.535=$46.20 • Gross pay: $520.22+$46.20=$566.42

  8. Check Your Understanding (p.7) • H: • 45.3+8.1=53.4 hours worked • Regular hours: 40 • OT hours: 13.4 • Regular pay: 40 x $17.50=$700 • OT pay rate: 1.5 x $17.50=$26.25 • OT pay: 13.4 x $26.25= $351.75 • Gross pay: $700+$351.75= $1051.75

  9. Terms (p.10) • Salary: a fixed amount of money for each pay period worked. • Get paid the same regardless of how many hours they worked. • They don’t get paid OT even if they work more than 40 hours a week. • They get paid the same even if they are absent from work if approved by employer. • Typically earn more money than hourly employees, have more education and skills required.

  10. Terms (p. 15) • Commission • Some salespeople earn a commission instead of a fixed salary or hourly pay. • May be an amount for each item sold, or it may ne a percent of the dollar value of sales. • Sometimes a salary + commission may be earned. • Straight commission • Salespeople who earn money only when they sell stuff. Commission = quantity sold x rate of commission

  11. Commission (cont.) • When the rate of commission is a percent, multiply the amount of sales by the rate to find the commission. Commission=sales x rate of commission

  12. Terms (p.16) • Quota: a fixed amount of sales that a person may be required to meet before receiving a commission. • Graduated commission: a salesperson’s rate of commission increases as their sales increase. • Rate of Commission: • Rate of commission=amount of commission/sales

  13. Terms (p.20-21) • Piece-rate: when employees are paid for each item or “piece” they produce. • Gross pay=# of pieces produced X piece rate • Per diem: when employees are paid a fixed daily amount. • These are usually temporary employees provided by temporary help agencies Gross pay= # of days worked X per diem rate • Tip: an amount of money given to someone for services they provide. • They are typically paid less than minimum wage. • Tip amount= total bill X tip percent • Tip amount = # of units x tip per unit

More Related