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# 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.

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## Gross Pay

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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

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