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

2.  Weekly 52 paychecks per year
 Biweekly 26 paychecks per year
 Semimonthly 24 paychecks per year
 Monthly 12 paychecks per year

3.  Weekly 24,960 ÷ 52 = $480
 Biweekly 24,960 ÷ 26 = $960
 Semimonthly 24,960 ÷ 24 = $1,040
 Monthly 24,960 ÷ 12 = $2,080

4.  Weekly 18,200 ÷ 52 = _______
 Biweekly 18,200 ÷ 26 = _______
 Semimonthly 18,200 ÷ 24 = _______
 Monthly 18,200 ÷ 12 = _______

5.  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

6.  Weekly  52 paychecks year
 Biweekly  26 paychecks year
 Semimonthly  24 paychecks year
 Monthly  12 paychecks year

7.  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

8.  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)

9.  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

10.  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

11.  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 = __________

12.  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

13. Gary’s straight-time salary is $500 per week.
This week his total sales were $2,500 and $75
was returned. His quota is set at $1,700. His
commission is based on 6% of sales after
returned 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

14. Gene Jordan receives a salary of $440 per week
plus 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. ______ – ______ =
______

15.  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