Chapter 2 – Earning an Income

2.1 Wages and Salaries

• a. Describe, using examples, various methods of earning income.

• b. Research and record jobs that commonly use different methods of earning income, including hourly wage, wage and tips, salary, commission, contract, bonus, and shift premiums.

• d. Read and explain the information provided on pay stubs.• e. Determine in decimal form, from a time schedule, the

total time worked in hours and minutes, including time and a half and/or double time and explain the strategies used.

• f. Determine gross pay for different situations, including:• • base hourly wage, with and without tips, from given or

calculated hours worked• • base hourly wage, plus overtime (time and a half, double

time) from given or calculated hours worked

Outcomes

• Minimum wage – the minimum amount a worker must be paid an hour; this rate varies, depending on which province or territory you live in. Currently minimum wage in Saskatchewan is $10 but this will increase to $10.20 on October 1, 2014

• Gross pay – the total amount of money earned; also called gross earnings

• Pay Statement – A form an employer gives an employee that shows earnings and deductions from earnings for a defined pay period

• Semi-monthly – twice a month• Biweekly – every two weeks

Definitions

Employee Name: Jolie

Company:ABC Elevator Repair

Pay Begin Date: 10/13/2014

Pay End Date: 10/19/2014

General

Employee ID: 1234567 Job Title: Elevator repair apprentice

Address: Pay rate: $19.00/hour

Hours and Earnings

Description Rate Hours Gross Earnings

Regular 19.00/h $712.50

Pay Statement Example

• How many days does the pay period cover?• How many hours did she work?• Did she earn more or less then minimum wage is SK?• Develop a formula to calculate her earnings for any

given pay period.

• List different ways people are paid• What are some jobs that fall into each category of pay?

• Is there an advantage to being paid weekly rather than monthly? Why do you think most workers are not paid weekly?

• If you worked at a job in which you earned an annual salary that was paid monthly, and you worked more the 40 hours in a week, how might you be compensated for your overtime work?

Discussion

• Zach is hired to be the office clerk at an insurance company. His annual salary will be $34,756.00

• Why is Zach not paid annually for his work?• Would he earn more each pay period if he were paid

semi-monthly or bi weekly?

Example 1

• Gregor works as a glazier, a person who cuts and fits glass, at a window

manufacturing company. He earns $19.99/h for 37.5 hours a week and time

and a half for any hours over that. Determine how many regular and overtime

hours he worked and how much he will get paid for this week.

Example 2

Weekly Schedule

Employee Day Start Time End Time Hours worked

Gregor Sunday

Monday 8:00am 4:00pm

Tuesday 8:15am 4:00pm

Wednesday 8:00am 3:30pm

Thursday 8:00am 4:00pm

Friday 9:00am 4:15pm

Saturday 8:30am 6:30pm

Assignment