The document discusses various methods for calculating employee pay, including: - Straight-time pay which is an employee's hourly rate multiplied by hours worked - Overtime pay which multiplies overtime hours by 1.5x or 2x the hourly rate - Total pay which is the sum of straight-time and overtime pay It provides examples of calculating pay for hourly workers, salaried workers, and those paid by commission. Piecework and graduated commission structures are also explained.

2. ACOS Objective Algebra 1: Use algebraic techniques
to make financial and economic decisions.

3. What We Will AccomplishWhat We Will Accomplish
Section 1-1Section 1-1
Section 1-2Section 1-2
Calculate straight-time pay.
Figure out straight-time, overtime, and
total pay.
Calculate the total hours on a weekly time
card.
Compute the total pay on a piecework
basis.
Section 1-Section 1-33
Section 1-Section 1- 44
Section 1-5Section 1-5
Section 1-6Section 1-6
Determine the salary per pay period.
Calculate the straight commission and
determine the gross pay.
Compute the total graduated commission.Section 1-Section 1-77

4. People rarely work for free.
When you do work and get paid, it’s important
to know how to calculate your gross income.
Did you know…
According to the U.S. Bureau of labor Statistics, the
average national wage for a full-time worker over 25
years old, with a high school diploma, was $26,000,
while the average wage for a full-time worker over 25
years old, with a four-year degree, was $40,100
(which is 54% more).

5.  Some jobs pay you a fixed amount of money
for each hour you work, which is called the
hourly rate.
 Ex: You work at the local movie theater, you
are paid $7.50 an hour to sweep up popcorn
and tear ticket stubs.
 $7.50 is the hourly rate

6. * If the manager schedules you to work 15 hours a
week, these hours are important in finding out
your straight time pay.
*Straight time pay: The total amount of money
you earn for a pay period at the hourly rate.
Straight Time Pay = Hourly Rate x Hours Worked

7. Shawna Jackson is a mail clerk. She earns $8.40
per hour. Last week she worked 40 hours, and this
week she worked 39½ hours.
What is her straight-time pay for each week?
Step: Find the straight-time pay.
Last week: $8.40 × 40 = $336.00
This week: $8.40 × 39½ = $331.80
AnswerAnswer

8. 1. A local car wash pays you $8.00 per hour. Last
summer you worked 35.25 hours a week. What was
your total straight time pay for the entire week?
2. Dominic is a machine operator at the Donovan
Manufacturing Corporation. He works 37.875 hours
per week and earns $9.755 per hour. What is his
straight-time pay each week?
3. Steve is a plumber. He earns $28.75 per hour. He works
39¾ hours. What is his straight-time pay?

9. When you work more than your regular hours,
you might receive overtime pay.
The overtime rate might be 1 ½ times your hourly
rate. This is called time and a half.
You may receive double time, or two times your
regular hourly rate.

10. Overtime Pay = Overtime Rate x Overtime Hours
Total Pay = Straight Time Pay + Overtime Pay
The total pay is often called gross pay.

11. Alonso Perez is paid $8.20 an hour for a
regular 40-hour week. His overtime rate is
1½ times his regular hourly rate. This
week Perez worked his regular 40 hours
plus 10 hours of overtime.
What is his total pay?

12. Step 1 :Step 1 : Find the straight-time pay.
Hourly Rate × Regular Hours Worked
$8.20 × 40 = $328.00
Step 2:Step 2: Find the overtime pay.
Overtime Rate × Overtime Hours Worked
(1.5 × $8.20) × 10 = $123.00
Step 3:Step 3: Find the total pay.
Straight-Time Pay + Overtime Pay
$328.00 + $123.00 = $451.00
Example 2 AnswerExample 2 Answer

13. Josie Spelling earns $9.00 per hour and works 40
hours per week. Because she had to work on
Thanksgiving, her employer paid her time and
a half for the additional 6 hours she put in.
Find her total pay.

14. Dorothy, a computer programmer, earns a regular hourly
rate of $15.25 and earns double that when she works
overtime. She usually works 40 regular hours and 12
hours overtime this month as she tries to update the
company’s systems. What is her straight time pay?
What is her overtime pay? And gross pay?

15. Nadia earns a regular hourly rate of $23.60.
She earns double time for work on Sundays.
Last week she worked her regular 36-hour
week plus 7½ hours on Sunday.
What is her total pay for the week?
More PracticeMore Practice

16. Weekly time cards show when you reported to
work and when you left each day.
They are an easy way to keep up with how much
you worked. Why is this important?
Total Hours = Sum of daily hours

17. Gail is required to keep a weekly time
card.
What are her daily hours for September
18?
What are her total hours for the week?

18. Step 1:Step 1: Find the hours worked on September
18.
Before Lunch: Time between 8:15 A.M. and 1:45 P.M.
(1:45 + 12:00) – 8:15
13:45 – 8:15 = 5h 30min
After Lunch: Time between 2:15 P.M. and 4:59 P.M.
4:59 – 2:15 = 2h 44 min
Total on September 18:
5h 30min + 2h 44min = 7h 74min
Round to the nearest quarter hour = 8¼
Example 3 Answer:Example 3 Answer:

19. Step 2:Step 2: Find the total hours for the week.
Sum of daily hours
8 + 8¼ + 7½ + 8¼ + 8
8 + 8¼ + 7½ + 8¼ + 8 = 39 +
4
/4 = 40 total hours
Example 3 Answer:Example 3 Answer:

20. Jamal Parker works at a company that uses
military time. Thus, 1:00 P.M. is shown as 13:00,
2:00 P.M. as 14:00, etc. On Monday, October 1,
Jamal worked from 8:02 to 11:47 and from 13:08 to
17:06.
How many hours did he work on Monday?
How many hours did he work rounded to the
nearest quarter hour?

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22. Some jobs may pay you on a piecework basis.
This is when you receive a specified amount of
money for each item of work that you complete.
Total Pay = rate per item x # of items produced
 Is it better to be paid on an hourly rate or by
piecework?

23. Washing a car, delivering newspapers, sewing
clothing, painting a house, or cutting a lawn.

24. Ray works for National Cabinet Company.
He is paid $8.00 for each cabinet he
assembles. Last week he assembled 45
cabinets. This week he assembled 42.
What is his pay for each week?
Step: Find the total pay.
Last week: $8.00 × 45 = $360.00
This week: $8.00 × 42 = $336.00

25. Gabe is a little league umpire.
He earns $20 per game on weekdays and $25
per game weekends. He umpires 14 weekday
games and 3 weekend games.
What is his total pay?
$355.00

26. Jay:
124 items produced
Rate per item $.89
What is the total pay?
$110.36

27. Salary = a fixed amount of money that you earn on a
regular basis.
Salaries might be weekly, biweekly, semimonthly, or
monthly.
Annual salary- total salary you earn during a year.
Does your boss expect less from you when you
become a salaried employee?

28. There are 52 weekly, 26 biweekly, 24
semimonthly, and 12 monthly pay periods per
year.
Salary per Pay Period=
YearperPeriodsPayofNumber
SalaryAnnual

29. Beth Huggins is a computer programmer.
Her annual salary is $42,648.
What is her monthly salary?
What is her weekly salary?
Step: Find the salary per pay period.
Monthly: $42,648.00 ÷ 12 = $3,554.00
Weekly: $42,648.00 ÷ 52 =52 = $820.15$820.15

30. A. Michelle Giuseffi is a police officer. Her
annual salary is $40,560.
What is her biweekly salary?
B. The city of Carson advertised for a
development project manager at a monthly
salary of $5,480. What is the annual salary?
What is the weekly salary?
$1,560
Annual Salary: $65,760
Weekly Salary: $1,264.62

31. C. Colin Evans is a hotel desk clerk who earns
an annual salary of $21,216.
What is his weekly salary?
$408

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33. Often times, retail positions pay you in
commission.
This is the amount of money that you are paid for
selling a product or a service.
What are the risks involved in working on
commission?

34.  Commission rate = specified amount of money
for each sale or it might be a percent of total
value of your sales
 Straight Commission = the commission is the
only pay you receive.
 Commission = Total Sales x Commission Rate

35. Step: Find the commission.
Total Sales × Commission Rate
$290,000 × 7½%
$290,000 × 0.075 = $21,750

36. Your gross pay is the greater of the two amounts.
Example 7: Owen is guaranteed a minimum salary of
$250 a week, or 7 percent of his total sales, depending
on whichever is greater. What is his gross pay for a
week in which his total sales were $3,614
$252.98

37. Jermaine Dixon sells electronic equipment. He
receives a straight commission of 6½ percent
of his total sales.
What commission will he receive in a week
where his sales total $12,416?
$807.04

38. Ryan O’Malley is paid either a commission or
by the hour, whichever is greater. His hourly
pay is $8.00 per hour with time and a half for
all hours that exceed 40 hours per week. His
commission is 7 percent of his sales. Find his
gross pay in a week in which he worked 48
hours. His total sales for the week were $6,120.
$428.40

39.  Your commission rate may increase as your sales
increase.
 Graduated commission is pay in which the
commission rate is different for different levels of
sales.
 It provides an extra incentive to sell more.
 Describe the kind of personality a salesperson has.
How does this influence his or her sales?

40. Irene Gomaz sells appliances at Twin City
Sales. She receives a graduated
commission as shown:
4% First $1,000
6% Next $2,000
8% Over $3,000
Gomaz’s sales for the past month totaled
$9,840.
What is her commission for the month?

41. Step: Find the sum of commission for all levels of sales.
Sales × Commission Rate
First $1,000 $1,000 × 4% = $ 40.00
Next $2,000 $2,000 × 6% = 120.00
Over $3,000 ($9,840 – $3,000) × 8%
$6,840 × 8% = 547.20
Total Graduated Commission $707.20
Example 8 AnswerExample 8 Answer

42. Pamela Miller sells musical instruments. She
earns 6½ percent commission on the first
$2,000, 8 percent on the next $3,000, and 10
percent on sales over $5,000.
Find the graduated commission on $7,368.
$606.80

43. Bob Elliott sells lumber. He earns 9 percent
commission on the first $25,000, 11 percent
commission on the next $30,000, and 15
percent on sales over $55,000.
Find the graduated commission on monthly
sales of $56,575.
$5,786.25

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45.  What is the difference in the way hourly and
salaried employees are paid?
Hourly employees are paid a certain amount for
each hour they work. They usually record their
hours on a time card. Salaried employees are
paid a fixed amount per year. They do not record
the number of hours they work. They are
generally paid the same amount regardless of
the number of hours they work.

46.  Why do you think some companies pay their
employees piecework instead of by the hour?
Answers may vary. A reason companies may
decide to pay their employees piecework would
be to motivate them to produce as many items as
possible during their workday. For example, if an
employee is paid a certain amount for each table
he assembles, he may assemble more tables
during an eight-hour workday than an employee
who is paid by the hour.

47.  Why are people who work in sales often paid
on commission?
Managers believe that salespeople will sell more
if they are paid a percentage of sales instead of
being paid a salary or by the hour.