Chapter Six Presentation

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Chapter Six Presentation

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

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