Chapter Six Presentation

  • 246 views
Uploaded on

 

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads

Views

Total Views
246
On Slideshare
0
From Embeds
0
Number of Embeds
0

Actions

Shares
Downloads
3
Comments
0
Likes
0

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. CHAPTER SIX EMPLOYEE PAY AND BENEFITS
  • 2. OBJECTIVES
    • 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.
  • 22. TRENDS IN THE WORKPLACE
  • 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.
  • 28. LABOR UNIONS AND PROFESSIONAL ORGANIZATIONS
  • 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.