6.2: PAY PERIODS AND HOURLY RATES OBJECTIVES

Transcription

1 6 Chapter EMPLOYMENT BASICS Commissions, Royalties, and Piecework Pay 6.4 Employee Benefits 6.5 Social Security and Medicare Section 6.2: PAY PERIODS AND HOURLY RATES OBJECTIVES Compute weekly, semimonthly, and biweekly earnings given annual salary. Compute hourly pay and overtime pay given an hourly rate. Section 6.2 1

2 Key Terms weekly biweekly semimonthly monthly direct deposit hourly rate regular hours overtime hours overtime hourly rate time and a half overtime double time pay gross pay minimum wage Do you have a job? How often are you paid? When are employees paid? 1. If you are paid weekly, you earn 52 paychecks per year and paydays usually fall on the same day each week. 2. Employees who are paid on a biweekly basis receive 26 paychecks per year, or every 2 weeks. Paydays also usually fall on the same day every other week. 3. Some employers distribute paychecks twice a month or semimonthly. These employees receive 24 paychecks per year and are usually paid on the 1 st and 15 th of each month. NBC Learn Finding & Keeping a Job Air Date: Section 6.2 2

3 What are the advantages for employers to use a different payment schedule? 4. Most employers offer employees direct deposit, where their paycheck is automatically deposited electronically into their bank accounts on payday. 5. Many part-time jobs pay employees an hourly rate for each hour they work. Full-time jobs can also be paid at an hourly rate. How often do employees work? 6. Every job, full or part-time, requires an employee to work a specific number of hours per week called regular hours. 7. Employees may work more hours than their regular hours and these extra hours are called overtime hours. 8. Some jobs will pay an overtime hourly rate as compensation for the extra hours, which is usually greater than the hourly rate for regular hours. NBC Learn Walmart gives employees a raise Air Date: Section 6.2 3

4 9. The overtime hourly rate is often 1.5 or 1 times the regular hourly rate and is referred to as timeand-a-half overtime. 10. Sometimes the overtime rate is 2 times the regular hourly rate and is called double-time pay. 11. Your total pay, which is the sum of your hourly pay and your overtime pay, is called your gross pay. This amount represents what you make in wages before taxes are assessed. 12. Federal and state laws mandate what they lowest hourly rate that can be paid to an employee in the United States and this rate is called the minimum wage. The current federal minimum wage is $7.25, and has not increased since July The minimum wage in New York is $9.70 with a scheduled increase to $10.40 at the end of Did you know?? There are different minimum wage rates for the fast food industry, Long Island, Westchester County, and large and small employers in New York City. Upcoming Minimum Wage Increases in NY State Can you guess any of the three states with the highest minimum wages? Section 6.2 4

5 Example 1 You are paid biweekly with an annual salary of $37,000. What is your biweekly salary, rounded to the nearest cent? Example 2 Your friend is paid a semimonthly salary of $1,239. What is her annual salary? Example 3 Emma works at Central Perk. Her regular hourly wage is $9.70. If she regularly works 20 hours per week, what is her regular weekly pay? If Emma works overtime (any hours over 20 hours), she receives an hourly rate of 1½ times her regular hourly rate. What is Emma s hourly overtime rate? Section 6.2 5

6 Example 4 Ben earns $10.70 per hour. If his regular hours are 40 hours per week, and he receives time and a half overtime, find his total pay for a week in which he works 45 hours. Example 5 You worked 40 regular hours last week, plus 7 overtime hours at a time and a half rate. Your gross pay was $ What was your hourly rate? Section 6.2 6

7 Example 6 A co worker of yours worked 40 regular hours last week, plus 2 overtime hours at a double time rate. Her gross pay was $484. What was her hourly rate? Section 6.2 7