1. Chapter 6 Pay, Benefits, and Working Conditions  Understanding Pay, Benefits, and Incentives  Compute payroll deductions and net pay.  Identify optional and required employee benefits and recognize their value.  Work Arrangements and Organizations

2. Gross Pay, Deductions, and Net Pay  Gross Pay  Hourly wages  Overtime  Salary  Commission  Minus Deductions  = Net pay  Self-employed Individuals  Pay equal to company profits  Estimate taxes & pay quarterly —Deductions Net pay (paycheck)

3. Calculating Gross Pay  Hourly pay = Hours worked during pay period x pay rate  Overtime Pay = pay rate x OT hours x 1.5  Annual Salary divided by # of pay periods = Gross Pay  Commission salary = Sales achieved x Commission percent © South-Western Educational Publishing

4. Your Paycheck  Your Pay Period may be  Weekly (52 pay period in a year)  Bi-weekly (26 pay period in a year)  Bi-monthly (24 pay period in a year)  Monthly (12 pay period in a year)  Deductions are subtracted from your gross pay  Required deductions:  Withholding Income taxes (Federal & Possibly State) vary by income and state  Social Security taxes 6.2% (employers match)  Medicare Taxes 1.45%  Optional deductions:  Health, Dental, Vision Insurance  Donations  Savings plans (401K)  Net pay (Take-home pay) is the amount of your paycheck.

5. Benefits and Incentives  Profit sharing  Paid vacations and holidays  Employee services  Child care  Sick pay  Leaves of absence  Insurance  Bonuses and stock options  Pension and savings plans  Travel expenses  Product discounts

6. Employer Insurance Benefits  Health insurance-portion paid by employee through deductibles  Life insurance-employer may pay a standard coverage additional benefit amounts would be employee paid.  Dental insurance-portion paid by employee through deductibles  Vision insurance-portion paid by employee through deductibles

7. Flexible Work Arrangements  Altered workweeks  Flextime-employee chooses their daily hours  Compressed workweek-40 hr work week in less than 5 days  Job rotation-rotate from one task to another during scheduled day or week  Job sharing-2 people share 1 full-time position  Permanent part-time-work less than 32 hrs a week  Telecommuting-working from home or non-office space

8. Labor Unions and Professional Organizations  May be a requirement of employment to be member of a Labor Union or Professional Organization  Labor Unions-group of people who work in similar occupations, organized for the benefit of all employees in these occupations paid through union dues.  Purpose-protect the rights of workers  Functions of unions  Recruit new members  Collective bargaining-salaries, benefits and working conditions  Support political candidates who favor unions  Provide support and services  Types of unions  Craft unions (bricklayers, carpenters)  Industrial unions (skilled/unskilled in a particular place:AFL- CIO)  Public-employee unions (teachers, firefighters, police)

9. Professional organizations  Organizations that support particular occupations that require considerable training and specialized skills.  Dues are collected as requirement of membership  Examples  American Bar Association-lawyers  American Medical Association-doctors  National Education Association-teachers  Purpose  Establish and maintain professional standards  Publication keep professionals up-to-date in their field  Lobby for Political Action for their profession