The document outlines various payment structures including weekly, biweekly, semimonthly, and monthly paychecks and calculates gross earnings based on hourly wages, salaries, and commissions. It explains minimum wage rates, overtime requirements, and provides examples of calculating pay for different workers based on their roles and hours worked. Additionally, it describes piece work compensation and includes specific examples to illustrate commission calculations and production-based wages.

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