6.2 VocabularyPay Periods and Hourly Rates

Pay Periods

• Weekly = 52 paychecks per year

• Bi-weekly = every 2 weeks; 26 paychecks per year

• Semi-monthly = 2 times per month; 24 paychecks per year

• Monthly = 1 time per month; 12 paychecks per year

Pay Rates

• Over time hours = extra hours

• Time-and-a-half = 1 ½ x hourly rate

• Double-time pay = 2 x hourly rate

• Gross pay = hourly pay + over time pay

6.3 VocabularyCommissions, Royalties, and Piecework

Pay

Vocabulary

Commission or royalty = pay based on the amount of sales they make.• Some employees are paid on

commission/royalty instead of hourly wage

• Example: Real estate agents receive a commission based on the cost of the house they sell. They may earn 8% of the sale of a $305,000 house.• 305,000 x 0.08 = $24,400 commission

Vocabulary

Piecework Rate = workers are paid according to the amount of items they produce.

• Some employees are paid at a piecework rate instead of an hourly rate and sometime are paid a combination of hourly and piecework rate.

• Example Some jobs in farming, manufacturing, and journalism.

Example #1Adrianna wrote a textbook for high school students. She receives a 10% royalty based on the total sales of the book. The book sells for $47.95 and 17,000 copies were sold last year.  

How much did Adrianna receive in royalty payments for last year?

Example #2

Allison sells cosmetics from door-to-door. She is paid a monthly commission. She receives 11% of her first $900 in sales and 17% of the rest of her sales.

Last month she sold $1,200 worth of cosmetics.

How much commission did she earn last month?