Important Terms for Life and for Spreadsheets Financial Terms Important Terms for Life and for Spreadsheets

How We Get Paid Hourly Rate Salary Fixed rate of a dollar amount for each hour Minimum wage is: $11.40 – General $10.70 – Student Salary A fixed regular payment usually based on an annual sum. A first year teacher salary is $45 000/year A police officers first year is $63 400/year An entry level job at McDonalds is $22 800/year

How We Get Paid Commission This is when you make a percentage of what you sell. For example: You work at the GAP and you are paid a 4% commission on your sales each month. If you sell $7028 (sales) of clothes this month you will make a commission of $281.12. This would be added to your paycheck. (4% of $7028 is 0.04*7028 = 281.12) Many jobs use a combination of Hourly Rate and Commission, although some jobs work purely on commission.

How We Get Paid Piecework Piecework is getting paid for performance. This includes some factory jobs, delivering papers or tree planting for example.

Other Important Terms Earnings: What you get paid This would be any money you make or your Pay. Gross Pay: All of the money you make (before deductions). Deductions: Money that is taken off of your pay. Deductions include income tax, pension, health and dental plans, union dues, professional fees and more. Net Pay: All of the money you take home (after deductions). Also known as take home pay. NET PAY = GROSS PAY - DEDUCTIONS

Basic Business Financial Terminology Revenue: This is all of the money coming in. Expenses: This is all of the money going out. Profit / Loss (Net Revenue): To determine the Profit or Loss use the simple equation… Revenue – Expenses = Profit/Loss If the answer is + the business has a profit If the answer is – the business has a loss