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?

WAGESFirst 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 hourWhat is his gross pay?

Regular pay 40*8.9 = 356.00Overtime 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 hourWhat is his gross pay?

Regular pay 40*11.90 = 440.00Overtime pay 11*(1.5*11.90)(1.5*11.90) = 17.8517.85*12 = 214.20

Total gross pay440.00 + 214.20 = $654.20

SALARYExempt employees - No matter how many

hours you work, you get paid the same amount each pay period.

52 weeks in a yearIf paid every two weeks 26 pay periodsIf paid twice a month 24 pay periodsIf paid once a month 12 pay periods

SalarySean’s salary is $42,500 a yearWhat is Sean’s 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 soldSold 2 carsCar 1 - $21,790Car 2 - $25,650How much does the Salesperson earn?

$21,790

+ 25,650

47,440

x _ .09

$4,269.60

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

Incentive Plans

Profit sharing Workers receive a share of the

company’s 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 salaryCan cost a company 20% to 40% of a employees salary to provide benefitsie an employee is paid $40,000This employee’s 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 OrganizerGraphic Organizer

Chapter 8 • Beginning a New Job Succeeding in the World of Work

INCENTIVEPLANS

•Bonuses•Stock options•Profit sharing

BENEFITS•Health insurance•Paid vacations

PAYMENT•Salary•Hourly wages

•Retirement plan•Convenience benefits

•Overtime•Commission

Employee CompensationEmployee CompensationEmployee CompensationEmployee Compensation

THOSE REQUIRED BY LAW

Unemployment compensation

Worker’s compensation

Social Security

Convenience Benefits

Services that make worker’s lives easierflexible work hoursfitness centerOn-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.