Chapter 1.1 Straight-Time Pay
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1 Calculate straight-time pay. Chapter 1.1 Straight-Time Pay How many of you have worked at a job? Were you paid an hourly rate or a salary? An hourly rate is the amount of money you earn for each hour you work. By multiplying your hourly rate times the number of hours you worked during a pay period you can calculate your straight-time pay. Straight Time Pay = Hourly Rate Hours Worked The total amount you are paid during a pay period is called your gross income. If your hourly rate is $12.00 and you work 39 1 hours, what is your straight-time 2 pay?
2 Calculate straight-time pay. Chapter 1.1 Straight-Time Pay If your hourly rate is $12.00 and you work 39 1 hours, what is your straight-time pay? 2 Straight Time Pay = Hourly Rate Hours Worked Straight Time Pay = $ Straight Time Pay = $ If you are paid $14.40 per hour, how many hours must you work to earn $ per week? Straight Time Pay = Hourly Rate Hours Worked $ = $14.40 Hours Worked $550.00/$14.40 = Hours Worked Hours Worked = rounded to the nearest quarter hour.
3 Calculate overtime pay and total pay. Chapter 1.2 Overtime Pay What happens when you work more hours than you are scheduled to work? Depending on the employer, you may earn overtime pay. Overtime pay is a special rate that is applied to the hours worked over the scheduled hours. This could be an incentive. This overtime rate could be time and a half, 1 1, double time, triple time, or even 2 straight time. Overtime Pay = Overtime Rate Overtime Hours Worked Total Pay = Straight Time Pay + Overtime Pay
4 Calculate overtime pay and total pay. Chapter 1.2 Overtime Pay You get paid $12.50 an hour for a 40-hour work week. You get paid time and a half for overtime hours. If you earned $ in one week, how many hours of overtime did you work? Total Pay = Straight Time Pay + Overtime Pay $ = $ [ $ ] h You worked 6 hours of overtime. $ = $ $18.75h $ = $18.75h h = 6
5 Chapter 1.3 Weekly Time Card Calculate the total hours on a time card. In order to keep track of your hours, a company may require you to punch or use a weekly time card. Sun. Most companies round the daily number of hours worked to the nearest quarter hour. Date In Out In Out Hours Mon. 9/15 8:15 am 12:15 am 1:00 pm 5:00 pm Tues. 9/16 8:30 am 12:05 pm 12:35 pm 5:20 pm Wed. 9/17 8:28 am 12:05 pm 12:30 pm 4:30 pm Thur. 9/18 8:15 am 1:45 pm 2:15 pm 4:59 pm Fri. 9/19 8:30 am 12:20 pm 12:50 pm 5:00 pm Sat
6 Chapter 1.4 Piecework Calculate total pay based on piecework. Rather than paying you an hourly rate, a company may pay you on a piecework basis. You work for a T-shirt printing company. Instead of paying you by the hour, the company will pay you for each shirt you print. Each shirt is a piece of the total job. Total Pay = Rate per item Number of Items Produced A soccer team has a car wash to raise money for an upcoming tournament. For each car they wash the team receives $20. If they wash 40 cars, how much money did they raise? Total Pay = Rate per item Number of Items Produced Total Pay = $20 40 Total Pay = $800
7 Chapter 1.5 Salary Calculate the salary per pay period. Some companies pay their employees on a salary basis. A salary is a fixed amount of money that you earn on a regular basis no matter how many hours you work. Note: Some companies may pay a salary for straight time pay and pay for overtime at a different rate. Your salary that you earn may be paid weekly, biweekly, semimonthly, or monthly. How many weeks are in a year? 52 How many biweekly periods are there? 26 How many months are in a year? 12 How many semimonthly periods? 24 Salary per Pay Period = Annual Salary Number of Pay Periods per Year
8 Chapter 1.5 Salary Calculate the salary per pay period. You are a website designer with an annual salary of $67,400. What is your monthly salary? What is your weekly salary? Salary per Pay Period = Annual Salary Number of Pay Periods per Year Monthly Salary per Pay Period = 67,400 = $5, Weekly Salary per Pay Period = 67,400 = $1, See graphing calculator lab on page 110.
9 Calculate the gross pay from commission. Chapter 1.6 Commission For jobs selling furniture, cars, or other services, you might get paid from commission. Like piecework, commission payment is a percentage or rate paid to you determined from the amount of sales you sell. A commission rate can be used as a percentage of the total value you sell. If commission is the only pay you receive, then you work on straight commission. Straight Commission = Total Sales Commission Rate You sell commercial real estate at 7 1 % straight commission. Last week your sales were 2 $290,000. What was your commission? Straight Commission = Total Sales Commission Rate Straight Commission = $290, Straight Commission = $21,750
10 Calculate the gross pay from commission. Chapter 1.6 Commission Minimum Salary: Instead of working on commission only, you might be guaranteed a minimum weekly or monthly salary. For some companies, you may earn the higher of your commission salary or minimum salary. Other companies may pay you a base minimum salary and a commission.
11 Calculate graduated commission. Chapter 1.7 Graduated Commission In order for companies to give incentive to sell more, companies may offer a graduated commission rate. Graduated commission offers a rate increase as your sales increase. Total Graduated Commission = Sum of all levels of Sales You sell appliances at Sears. Your graduated commission is shown at the right. If your sales for the past month totaled $9,840, what is your commission? First $1,000 = % = $40.00 Second $2,000 = % = $ Over $3,000 = 6,840 8% = $ Commission % Level of Sales 4% First $1,000 6% Next $2,000 8% Over $3,000 Remember to convert percent to decimals. Where did $6,840 come from? Total Commission = $707.20
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