Pay period calculation notes - Mrs. Wroblewski

Unit 4: Income Topic: Employee Compensation & Benefits ChiArts Financial Statistics

Employee Compensation & Benefits • Unit Enduring Understandings – There is no such thing as a “free lunch.” – Monetary income is only one way to measure value.

• Unit Essential Questions – How do I make more money? – How do I choose a job? – Why is my take-home pay less than my quoted salary?

Pay Periods & Hourly Rate Calculations Pay Period Vocabulary • • • • • •

Annual – yearly Monthly – once a month (12 paychecks/year) Semimonthly – twice a month (24 paychecks/yr) Biweekly – every other week (26 paychecks/year) Weekly – every week Hourly – every hour

Pay Periods & Hourly Rate Calculations Example 1 – Janice is paid hourly. She earns $10 per hour. If she works 40 hours per week, what is her gross weekly pay? Solution: ($10)(40) = $400 gross weekly pay

Pay Periods & Hourly Rate Calculations You Try! Hector works in a gas station and earns $8.60 per hour. Last week he worked 29 hours. What was his gross pay last week?

Pay Periods & Hourly Rate Calculations Example 2 – Cecil is paid biweekly. Her biweekly salary is $1,763.28. What is her annual salary? Solution: There are 26 biweekly paychecks in a year, so multiply biweekly salary by the number of paychecks to get: ($1,763.28)(26) = $45,845.28 annual salary

Pay Periods & Hourly Rate Calculations You Try! Manny is paid semimonthly. His semimonthly salary is $1,239. What is his annual salary?

Pay Periods & Hourly Rate Calculations Example 3 – Sean is paid biweekly. His annual salary is $42,500. What is his biweekly salary to the nearest cent? Solution: There are 26 biweekly paychecks in a year, so divide annual salary by the number of paychecks to get: $42,500/26 = $1,634.62

Pay Periods & Hourly Rate Calculations You Try! John’s annual salary is $24,869. He is paid weekly. What is his weekly salary?

Pay Periods & Hourly Rate Calculations Example 4 – Amy regularly works 20 hours per week at Pook’s Dry Cleaners, Mon-Fri. She earns $8.10 per hour and receives doubletime pay for working Sundays. What is her hourly rate on Sundays? Solution: (2*$8.10) = $16.20

Pay Periods & Hourly Rate Calculations You Try! Lynn regularly works a 40-hour week and earns $9 per hour. She receives time-and-a-half pay for each hour of overtime she works. What is her hourly overtime rate?

Pay Periods & Hourly Rate Calculations Example 5 – Amy regularly works 20 hours per week at Pook’s Dry Cleaners, Mon-Fri. She earns $8.10 per hour and receives doubletime pay for working Sundays. Next week she will work her regular 20 weekday hours plus an additional eight hours on Sunday. What will her total pay be for the week? Solution: $8.10(20) + (2*$8.10)(8) = $291.60

Pay Periods & Hourly Rate Calculations You Try! Lynn regularly works a 40-hour week and earns $9 per hour. She receives time-and-a-half pay for each hour of overtime she works. Last week she worked 43 hours. What was her total paycheck for the week?

Pay Periods & Hourly Rate Calculations Example 6 – Allison sells cosmetics part-time. She receives 11% commission on her first $900 in sales and 17% commission on any additional sales. Last month she sold $1,250 worth of cosmetics. How much commission will she earn for the month? Solution: (0.11)($900) + (0.17)($1,250 – $900) = $158.50

Pay Periods & Hourly Rate Calculations You Try! Maram is a real estate agent. She earns 6.5% commission on each sale she makes. Last month she sold one house for $250,000 and another for $310,000. What did Maram earn in commissions for the month?