Chapter Six Presentation

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    • Compute payroll deductions and net pay from information and tables provided.
    • Identify optional and required employee benefits and recognize their value as additions to net pay.
    • Explain trends in the workplace such as flexible schedules, job rotation, job sharing, and permanent part-time employment.
    • Understand the role of unions and professional organizations in the workplace.
  • 3. Gross Pay, Deductions and Net Pay
  • 4. Gross Pay
    • The total or agreed-upon rate of pay before any deductions are made.
  • 5. Ways of Getting Paid
    • Hourly Rate: The number of hours you worked times the hourly rate of pay
    • Overtime: Hours worked beyond the regular hours.
    • Monthly Salary: You receive pay for 40 hours a week with no pay for overtime.
    • Annual Salary: Divided into equal parts over the year
  • 6. Deductions
    • Amounts subtracted from your Gross Pay.
    • Examples:
      • Required by Law: Social Security, Federal Income Tax, and State Income Tax.
      • Not Required by Law: Health Insurance, IRA, TSA, optional benefits, etc.
  • 7. Net Pay
    • The amount left over after all deductions are taken out. Net pay is also referred to as take-home pay.
    • This is the amount of your check you can actually spend.
  • 8. Formulas
    • Regular Wages or Salary + Overtime = Gross Pay
    • Gross Pay – Deductions = Net Pay
    • Look at figure 6-2. Employee Withholding Sheet.
    • Look at figure 6-3
  • 9. Benefits and Incentives
  • 10. Profit Sharing
    • A plan that allows employees to receive a portion of the company’s profits at the end of the corporate year.
  • 11. Paid Vacations and Holidays
    • While you are on vacation you are paid as usual.
    • Another benefit you might receive is paid time off for holidays. If an employee is required to work on a holiday they usually receive double time or time and ½.
  • 12. Employee Services
    • Extras that companies offer in order to improve employee morale and working conditions.
    • Example: if you work in a clothing store you might receive a 10% discount.
  • 13. Sick Pay
    • Allowance of days each year are given for illness.
    • It is normal to receive 3-10 days sick leave a year without deduction.
  • 14. Leaves of Absence
    • Some employers allow employees to leave their jobs(without pay) for certain reasons, such as having children and completing education, and then return to their jobs at a later time.
    • The Family and Medical Leave Act took effect August 5, 1993
      • Stated that Employers with fifty or more employees must give up to twelve weeks unpaid leave per year for the birth or adoption of a child, care of a loved one, etc
  • 15. Insurance
      • Most Employers offer insurance benefits to their employees.
      • Most plans are paid for.
      • Insurance plans typically include health, dental, vision, and life insurance
  • 16. Health Insurance
    • A typical plan is a $150 deductible. After that the insurance will pay 80% and the user will pay 20%.
    • We will discuss this in a later chapter.
  • 17. Life Insurance
    • Pays a cash benefit to a designated person, called a beneficiary, when the insured dies.
    • We will cover this issue in detail in a later chapter.
  • 18. Dental Insurance/Vision
    • We will discuss in Chapter 27
  • 19. Bonuses and Stock Options
    • Incentives based on quality of work done, years of service, or company sales or profits.
    • Christmas bonuses are popular.
    • Stock-purchase options give the employees options to buy stock in the business.
  • 20. Pension and Savings Plans
    • Employee sponsored savings plans
      • 401 (K) for private employers
      • 403 (K) for government employers
    • Usually employees can not withdraw from these accounts until retirement
  • 21. Travel Expenses
    • If you are required to travel you receive money in order to travel.
      • Car, Insurance, gas expense, meals, lodging, etc.
  • 23. Altered Workweeks
    • Flexible Schedules
      • Starting and finishing when you like as long as you are there eight hours during core hours.
    • It allows people to work when their schedules are best.
  • 24. Job Rotation
    • Training employees to be efficient in more than one specialized area.
    • This can be costly to the companies, however it is better for the individuals because it helps them to improve individually.
    • It is also better because then one person doesn’t have total control over one area.
  • 25. Job Sharing
    • Two people share a full time job.
    • Salaries are split according to each persons contributions
  • 26. Permanent Part-time and Telecommuting
    • Some employees are choosing to work only part-time and some businesses are allowing those people benefits.
    • Telecommuting allows employees to work in their own home in such areas as routine data entry, transcription, keyboarding, and software development.
    • Information processing and related fields, home work is becoming popular.
  • 27. Childcare
    • Many companies have started providing on-site child care facilities as well as coverage of child care expenses as part of employee benefits.
    • Legislation will focus on high-quality, affordable programs for children and working parents.
  • 29. History of Unions
    • Unions were organized in the US as early as 1800.
    • The first union was a local group of skilled craftspeople that wanted to protect themselves from competition by untrained and unskilled employees.
    • 1886: the American Federation of Labor was organized by Samuel Gompers.
  • 30. More………..
    • The unions had little power till 1935.
    • In 1935 the National Labor Relations Act gave unions the right to organize and bargain with employers.
    • In 1938, John L. Lewis became the first president of a new union called the CIO(Congress of Industrial Organizations)
  • 31. More………..
    • Unions continued to grow in number, power, and size until 1947, when Congress passed the Labor Management Relations Act, commonly called the Taft-Hartley Act.
    • This act was passed to limit the powers of unions and to curb strikes.
  • 32. More…….
    • In 1955, the AFL and CIO merged under the leadership of George Meany and became the largest and most powerful union in the U.S.
  • 33. Functions of Unions:
    • To recruit new members
    • To engage in collective bargaining
    • To support political candidates who are favorable to the union
    • To provide support services for members
  • 34. More……..
    • Collective Bargaining: the process of negotiating the terms of employment for union members
    • Union contracts usually provide for seniority----last one hired should be first to be laid off.
    • Mediation: When a union gets the help of a 3 rd party.
  • 35. Three Types of Unions
    • Craft Unions: members are people with a particular craft or trade.
    • Industrial Unions: Industry workers. AFL-CIO, Teamsters, and United Auto Workers.
    • Public Employee Unions: Municipal, county, state, or federal employees such as firefighters, teachers, and police officers.