Paying Employees

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This PowerPoint teaches students about how often employers pay employees and the different methods used to pay employees.

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Paying Employees

  1. 1.  Weekly 52 paychecks per year Biweekly 26 paychecks per year Semimonthly 24 paychecks per year Monthly 12 paychecks per year
  2. 2.  Weekly 24,960 ÷ 52 = $480 Biweekly 24,960 ÷ 26 = $960 Semimonthly 24,960 ÷ 24 = $1,040 Monthly 24,960 ÷ 12 = $2,080
  3. 3.  Weekly 18,200 ÷ 52 = _______ Biweekly 18,200 ÷ 26 = _______ Semimonthly 18,200 ÷ 24 = _______ Monthly 18,200 ÷ 12 = _______
  4. 4.  Hourly ◦ Rate of pay for time worked ◦ Minimum wage is “hourly” Salary ◦ Straight amount, regardless of time worked Commission ◦ Based on sales or performance ◦ Usually a percentage of sales Piece Work ◦ Based on production ◦ Usually a set price per unit
  5. 5.  Weekly  52 paychecks year Biweekly  26 paychecks year Semimonthly  24 paychecks year Monthly  12 paychecks year
  6. 6.  Establishes minimum wage ◦ Federal = $7.25 ◦ Michigan = $7.40 ◦ Higher rate applies Requires overtime premium for any hour worked over 40 in one week ◦ Time-and-a-half (1.5) for overtime ◦ Double-Time NOT required by law Some employees are exempt from this law ◦ Employees of movie theaters ◦ Agricultural workers ◦ Workers covered by other laws (Railroad, Truck Drivers) ◦ Salaried workers
  7. 7.  Juan Olivar worked 35 hours @ 9.50 per hour ◦ 35 x 9.50 = 332.50 Tomoki Romo worked 48 hours @ $12.75 per hour ◦ Worked more than 40 hours (8 hours will be at overtime rate) ◦ 40 x 12.75 = 510.00 ◦ 8 x (12.75 x 1.5) converts to ◦ 8 x 19.125 (rounded to 19.13) = 153.04 ◦ 510.00 regular + 153.04 overtime = 663.04 gross earnings (or gross pay)
  8. 8.  Shawn Williams worked 52 hours @ $7.45 per hour 40 hours X 7.45 = _______________ 12 hours X (7.45 x 1.5*) = _______________ Regular __________ + Overtime _____________ Gross Earnings = _______________ *Remember to round to 2 decimal places
  9. 9.  Employee is told in advance what annual salary is Based on how often an employee is paid, earnings are calculated as follows … Nadia Mendez is a school teacher paid $29,800 per year ◦ Weekly 29,800 ÷ 52 = 573.08 ◦ Biweekly 29,800 ÷ 26 = 1,146.15 ◦ Semimonthly 29,800 ÷ 24 = 1,241.67 ◦ Monthly 29,800 ÷ 12 = 2,483.33
  10. 10.  Carl Freeman is an accountant paid $42,100 per year ◦ Weekly 42,100 ÷ 52 = __________ ◦ Biweekly 42,100 ÷ 26 = __________ Semimonthly 42,100 ÷ 24 = __________ ◦ Monthly 42,100 ÷ 12 = __________
  11. 11.  Salary is calculated same as presented before Commission is a percentage of total sales (usually paid for sales over a set quota, less returns) ◦ Quota = Expected amount ◦ Returns = Items or amounts customers return, which reduces the sale
  12. 12. Gary’s straight-time salary is $500 per week.This week his total sales were $2,500 and $75was returned. His quota is set at $1,700. Hiscommission is based on 6% of sales afterreturned merchandise, after he met his quota.Actual Sales 2,500 – 75 = 2,425.00Sales Above 2,425 – 1,700 = 725.00Commission 725 x 6% = 43.50Salary + Comm. 500 + 43.50 = 543.50
  13. 13. Gene Jordan receives a salary of $440 per weekplus 18% commission on all sales over $2,800.Gene’s total sales last week were $5,500.Returned sales were $1,250.Actual Sales ______ - ______= ______Sales Above ______ – ______ = ______Commission ______ – ______ = ______Salary + Comm. ______ – ______ =______
  14. 14.  Wage based on the number of units or pieces produced Common in manufacturing facilities Quota is often set Toby Jennings works for a wholesale medication warehouse. He is compensated on the number of lines he files from an order. He is paid $.04 for each line filled. Toby filled 15,193 line items this pay period. Earnings 15,193 x $.04 = $607.72

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