Employee Pay and Benefits Chapter 6

W-4

Paystub

W-2

W-2

Gross Pay Gross Pay – the agreed upon rate of pay before any deductions are made Hourly Wages Hourly wages times hours worked equal gross pay $5.00 x 40 hrs = $200.00 Overtime Hours work beyond regular hours Standard workday is 8 hours Standard workweek is 40 hours According to the Fair Labor Standards Act, overtime is 1.5 time the regular hourly pay $5.00 regular pay = $7.50 overtime 40 hours x $5.00 = $200.00 5 hours x $7.50 = $ 37.50 Gross Pay = $237.50

Salary Monthly Salary Annual Salary Get paid same no matter how many hours worked Some employer do pay an overtime minimum wage for anything over 40 hours Annual Salary Divided into equal amounts Either 24 or 26 payments per year

Deductions Amounts such as social security, federal income tax, and state income tax that by law are deducted from your gross pay Some amounts are not required by law but done by the employer such as union dues, insurance payments, retirement Other amounts are optional such as IRA’s, mutual funds, charitable donations, What other deductions can you think of By law your pay check must have a detailed list of all deductions

Net Pay What is left after all deductions have been taken out Often called take home pay Should save pay stubs to compare with W-2 at end of year

Benefits and Incentives Some are optional, some required by law Profit Sharing Paid Vacations and Holidays Employee Services Sick Pay Leaves of Absence Insurance Bonuses and Stock Options Travel Expenses Pension and Savings Plans Discounted Shopping Wellness Programs

Paid Vacations and Holidays Profit Sharing Allows employees to receive a portion of the company’s profit at the end of the year Employees who profit share identify closely with the company, more likely to reduce waste, and increase productivity Paid Vacations and Holidays People working holidays are usually paid double

Employee Services Sick Pay Discounts Social and recreational programs Free parking Tuition reimbursement Daycare centers Free counseling Sick Pay 3 to 10 days per year

Leaves of Absence Insurance Often without pay Maternity Completing education Family and Medical Leave Act Get up to 12 weeks unpaid leave Employers must maintain health coverage Must reinstate job Insurance Health Insurance Life Insurance Dental Insurance Vision Insurance

Bonuses and Stock Options Bonuses for no serious accidents Goal reaching bonuses By shares at certain prices for certain amount of time Pension and Savings Plans 401k Sometimes employers with match what the employee puts in the account Travel Expenses Company car or paid mileage for using own car Food, motel, and other expenses are paid for

8 Things Employees Need 1. Freedom 2. Targets 3. Mission 4. Expectations 5. Input 6. Connection 7. Consistency 8. Future

Freedom Best practices can create excellence, but every task doesn't deserve a best practice or a micro-managed approach. (Yes, even you, fast food industry.)

Targets Goals are fun. Everyone—yes, even you—is at least a little competitive, if only with themselves Targets create a sense of purpose and add a little meaning to even the most repetitive tasks Without a goal to shoot for, work is just work. And work sucks

Mission We all like to feel a part of something bigger. Striving to be worthy of words like "best" or "largest" or "fastest" or "highest quality" provides a sense of purpose Let employees know what you want to achieve, for your business, for customers, and even your community. And if you can, let them create a few missions of their own Caring starts with knowing what to care about—and why

Expectations While every job should include some degree of latitude, every job needs basic expectations regarding the way specific situations should be handled. Criticize an employee for expediting shipping today, even though last week that was the standard procedure if on-time delivery was in jeopardy, and you lose that employee Few things are more stressful than not knowing what your boss expects from one minute to the next When standards change make sure you communicate those changes first. When you can't, explain why this particular situation is different, and why you made the decision you made

Input Everyone wants to offer suggestions and ideas. Deny employees the opportunity to make suggestions, or shoot their ideas down without consideration, and you create robots -- Robots don't care Make it easy for employees to offer suggestions. When an idea doesn't have merit, take the time to explain why. You can't implement every idea, but you can always make employees feel valued for their ideas.

Connection Employees don’t want to work for a paycheck; they want to work with and for people. A kind word, a short discussion about family, a brief check-in to see if they need anything... those individual moments are much more important than meetings or formal evaluations.

Consistency Most people can deal with a boss who is demanding and quick to criticize... as long as he or she treats every employee the same. While you should treat each employee differently, you must treat each employee fairly. (There's a big difference.) The key to maintaining consistency is to communicate. The more employees understand why a decision was made the less likely they are to assume favoritism or unfair treatment.

Future Every job should have the potential to lead to something more, either within or outside your company. For example, I worked at a manufacturing plant while I was in college. I had no real future with the company. Everyone understood I would only be there until I graduated. One day my boss said, "Let me show you how we set up our production board." I raised an eyebrow; why show me? He said, "Even though it won’t be here, some day, somewhere, you'll be in charge of production. You might as well start learning now." Take the time to develop employees for jobs they someday hope to fill—even if those positions are outside your company. Employees will care about your business when you care about them first.