Chapter 1 Gross Pay

1.1 Hourly Pay and Salary

• Employees-– Those who work for others

• Employers-– The person or company an employee works

for

• Hourly Rate-– Certain amount for each hour worked

• Gross Pay-– Total amount of money paid to an employee

Gross Pay for Hourly-Rate Employees

Hourly x Number of = Gross Pay

Pay Hours Worked

A. $7.50 x 46 hrs =

B. $16.25 x 25 hrs =

C. 8hrs x 5 days = 40 hrs x $18.75=

D. 8+6+7+6+5= 32 hrs x $9 =

Gross Pay for Salaried Employees

• Salary-– Fixed amount of money for each time period

worked

• Pay per x Number of Time = Gross

Time Period Periods WorkedPay

• Pay Periods– Weekly-52 - Bi Weekly-26– Monthly 12 - 2x per Month-24– Yearly/Annually-1 – Semiannually-2

E. $680 x 2 wks =

F. $540 x 52 wks =

1.2 Average Pay

Simple Averages

• Average-– Single number used to represent a group of

numbers

A. ($18 + $58 + $32) / 3=

B. ($2,400+$3,200+$1,500+$1,700)/4

C. $264/38

D. ($35,800+$47,000)/2=

Averages in Grouped Data

E. 5 x $12 = $60

2 x $9 = $18

+ $11

$89/8=

F. ($280 + $315 + $424 + $265)/ 4 =

Unknown Items in a Set of Data

G. 68+80+75+79=

77 x 5=

385-302 =

H. 4 x 86 =

420-344 =

1.3 Regular and Overtime Pay

Recording Hours Worked

• How do you clock in?– Magnetic Strip Card– Time Card– Time Sheet– Computer Log-In

Overtime and Overtime Pay Rates

• Overtime-– Time worked beyond the regular working day

or week

• Time-and-a-half pay- – x 1.5

• Double time- – x 2

1.5 x Regular Pay Rate = Time-and-a-half rate

(don’t round)

2 x Regular pay rate = Double-time rate

A. 1. $7.51 x 1.5 = $7.51 x 2 =

2. $8.76 x 1.5 = $8. 76 x 2 =

3. $13.67 x 1.5 = $13.67 x 2 =

B. $11.25 x 1.5 = $11.25 x 2 =

Regular and Overtime Wages

• S1: Find the regular & overtime hours worked

• S2: Find the overtime pay rate

• S3: Find the regular pay

• S4: Find the overtime pay

• S5: Add regular and overtime pay

C. Regular 8 + 8 + 6 + 8 + 8 =

Overtime 1.75 + 0.5 =

$13.69 x 1.5 =

38 x $13.69 =

2.25 x 20.535 =

$520.22 + $46.20 =

D. Regular 40

Overtime 45.3 – 40 =

$17.50 x 1.5 =

$17.50 x 40 =

$26.25 x 13.4 =

$700 + $351.75 =

1.4 Commission

• Straight CommissionCommission-

An amount for each item sold or a percent of the dollar value of sales

Quantity sold x rate of = commission commission

A. $1.30 x 74 =B. $0.075 x 1,200

Sales x Rate of commission = commission

C. 0.15 x $9,500 =

D. $2870 + $3,150 + $3,940 =

$9,960 x 0.15 =

Commission Based on Quota

• Fixed amount is called quota • Have to meet quota before receive

commissionE. $2,890-$2,000 = $890 x 0.03 =$26.7 + $125 =F. $29,700 - $15,000 = $14,700 x 0.07 =$1,029 + $2,300 = $3,329

Graduated Commission

• Rate of commission increases as the sales increases

G. $100,000 x 0.03 = $120,000- $100,000 = $20,000 x 0.05 =$3,000 + $1,000 = H. $112,000 - $85,000 =$85,000 x 0.15 =$27,000 x 0.18=$4,860 + $12,750 =

Rate of Commission on Sales

Rate of = Amount of / Sales

Commission Commission

I. $448 / $6,400 =

J. $3,240 / $54,000 =

1.5 Other Wage Plans

Piece-Rate Employees

• Paid by the number of pieces you produce

Number of Pieces x Piece Rate = Gross Pay Produced

A. 7+6+9+8+5 = 35 x $18 = B. 56 + 44 – 6 = 94 x $1.20 =

Per Diem Employees

• Per Diem – – By the Day

Per Diem Rate x Number of Days = Gross Pay

C. $425 x 180 =

D. $20 x 57 =

Tip Employees

• Tip - – Amount of $ given to someone for services

provided

Tip Percent x Total Bill = Tip Amount

Tip Per Unit x Number of Units = Tip Amount

E. 1. $10.20 x 0.15 =

2. $10.20 + $1.53 =

F. 1. $7.60 x 0.15 =

2. $7.60 + $1.14 =