How to calculate Commission. Learning Target How to calculate Commission.

Pay periods Weekly: once a week or 52 times a year. Biweekly: every two weeks or 26 times a year. Semimonthly: twice a month or 24 times a year. Monthly: once a month or 12 times a year.

How Would You Define Benefits? Rewards Incentives Things of value

Wages Versus Salaries Wages generally refer to hourly compensation paid to operating employees. The basis for wages is time. Salary is income paid to an individual on the basis of time. Commission is based on a percentage of the sale

Problems from Last Week John is selling sets of knives and makes 10% commission on all sales. What would his commission be on the sale of a $3250 set of knives? A salesperson made $890.50 selling $6850 worth of electronic equipment. Find the commission rate.

Double Time: Hours worked at twice the normal rate of pay (holidays, weekends, etc.) Shift Differential: An increase on the normal hourly rate for working undesirable shifts (3rd, swing, etc.) Split Shift: Increase in pay for working staggered shifts that accomodate for busy times (splitting an 8 hour day into 2, not connected, 4 hour shifts) Comp Time: Instead of extra money for overtime, time off is given

WAGES First 40 hours is at regular pay rate. Anything over 40 hours is deemed ‘Overtime’ Anything over 8 hours a day at some places, too Overtime Pay? Time and a half, Double, 7th Day Pay, Sunday Pay

Hourly wage example Regular pay 40*8.9 = 356.00 Jim worked 45 hours last week He makes $8.90 an hour What is his gross pay? (overtime is time and a half (1.5)) Regular pay 40*8.9 = 356.00 Overtime pay 5*(1.5*8.9) = 66.75 Total gross pay 356.00 + 66.75 = $422.75

Now – you try… Hourly wage example Judy worked 52 hours last week He makes $11.90 an hour What is his gross pay? Regular pay 40*11.90 = 440.00 Overtime pay 11*(1.5*11.90) (1.5*11.90) = 17.85 17.85*12 = 214.20 Total gross pay 440.00 + 214.20 = $654.20

SALARY Exempt employees - No matter how many hours you work, you get paid the same amount each pay period. 52 weeks in a year If paid every two weeks 26 pay periods If paid twice a month 24 pay periods If paid once a month 12 pay periods

Salary every two weeks bi- monthly Once a month $42,500/26 $42,500/24 Sean’s salary is $42,500 a year What is Sean’s gross pay if he gets paid… every two weeks bi- monthly Once a month $42,500/26 $42,500/24 $42,500/12 $3,541.67 $1,634.62 $1,770.83

Commission Incentive to works because pay is directly related to the amount of work a person does Ie. Sales person and Production workers

Commission Car Sales Person earns 9% commission. Sold 2 cars Car 1 - $21,790 Car 2 - $25,650 How much does the Salesperson earn? $21,790 + 25,650 47,440 x _ .09 $4,269.60

Fringe benefits Financial compensation in addition to wages and salary Can cost a company 20% to 40% of a employees salary to provide benefits ie an employee is paid $40,000 This employee’s fringe benefits could cost between $8,000 and $16,000 a year

Common fringe benefits Life, health, dental, disability insurance Health insurance most costly and sought after benefit Profit-sharing & Pension plans Builds retirement funds Employers may also contribute Paid Vacations Personal Illness Absences for the birth of a child