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What is the major reason people

work?
Love of your job? To sharpen your soft
skills? To meet new and exciting
people?
NO to make money!!!
Focus: How to calculate different types
of pay?
Chapter 8 section 2

Compelling Why!
If you are to receive a salary, do you
know how to calculate your gross pay
for each pay period?
What kind of information do you need?
Hourly Workers?

Are you entitled to overtime?


How do you calculate OT?

WAGES
First 40 hours is at regular pay
rate.
Anything over 40 hours is at 1.5
Nonexempt employees receive
overtime.

Hourly wage example


Jim worked 45 hours last week
He makes $8.90 an hour
What is his gross pay?

Regular pay 40*8.9 = 356.00


Overtime pay 5*(1.5*8.9) = 66.75
Total gross pay
356.00 + 66.75 = $422.75

Now you try


Hourly
wage
example
Judy worked 52 hours last week
He makes $11.90 an hour
What is his gross pay?

Regular pay 40*11.90 = 440.00


Overtime pay 11*(1.5*11.90)
(1.5*11.90) = 17.85
17.85*12 = 214.20
Total gross pay
440.00 + 214.20 = $654.20

SALARY
Exempt employees - No matter how many
hours you work, you get paid the same
amount each pay period.
52 weeks in a year
If paid every two weeks
26 pay
periods
If paid twice a month 24 pay periods
If paid once a month
12 pay periods

Salary
Seans salary is $42,500 a year
What is Seans gross pay if he gets paid

every two
weeks

bi- monthly

Once a
month

$42,500/26

$42,500/24

$42,500/12

$1,634.62

$1,770.83

$3,541.67

Commission
Incentive to works because
pay is directly related to
the amount of work a
person does
Ie. Sales person and
Production workers

Commission Car Sales Person


earns 9% commission for each
car sold
Sold 2 cars
Car 1 - $21,790
Car 2 - $25,650
How much does the
Salesperson earn?

$21,790
+ 25,650
47,440
x _ .09
$4,269.60

Base + incentive
Jill works at Best Buy and has a biweekly salary of $1,000.
She earns 3% of the merchandise
she sells.
She sold $6,000 in merchandise this
pay period.
What is Jills gross pay?
$1,000 + (.03 x 6000)
$1,000 + 180 = $1,180.00

Incentive Plans
Profit sharing

Workers receive a share of the


companys profits.

Performance Bonuses

Companies pay bonuses to workers


who increase the quantity or quality
of their work.

Bell work

Besides pay what


other expectations do
you have from your
employer when you get
a full-time job.

Fringe benefits
Financial compensation in addition to
wages and salary
Can cost a company 20% to 40% of a
employees salary to provide benefits
ie an employee is paid $40,000
This employees fringe benefits could
cost between $8,000 and $16,000 a
year

Common fringe benefits


Life, health, dental, disability insurance

Health insurance most costly and sought after benefit

Profit-sharing & Pension plans

Builds retirement funds

Employers may also contribute

Paid Vacations
Personal Illness, and bereavement days
Absences for the birth of a child

Graphic Organizer

Employee Compensation
INCENTIVE
PLANS
Bonuses
Stock options
Profit sharing
BENEFITS
Health insurance Retirement plan
Paid vacations
Convenience benefits
PAYMENT
Salary
Overtime
Hourly wages Commission
Chapter 8 Beginning a New Job

Succeeding in the World of Work

THOSE REQUIRED BY LAW

Unemployment compensation

Workers compensation

Social Security

Convenience
Benefits
Services that make
workers lives easier
flexible work hours
fitness center
On-site childcare
What can you think
of?

Cafeteria Plan
Not a benefit but a
policy that lets
employees chose
the benefits they
want.

ie an employee may
choose disability
insurance over
vacation time.