1. 1.1 Hourly Pay When you get a fixed amount of money for each hour you work. Hourly rate: amount paid per hour worked. Straight-time pay: the total amount of money you earn for a pay period at the hourly rate. Calculations: Straight-Time Pay = Hourly Rate x Hours Worked Last week you worked 40 hours at a rate of $8.40 per hour. That is your straight-time pay for the week?

2. 1.2 Overtime Pay If you work more than your required hours, you could receive overtime pay. Most common types: ◦ Time and a half – 1½ times your hourly rate. ◦ Double time – 2 times your hourly rate. Overtime is usually given to people who work 35-40 hours a week. (Full time) Calculations: ◦ Overtime Pay = Overtime Rate x Overtime hours ◦ Total Pay (Gross Pay) = Straight-time pay + Overtime pay Alonzo Perez is paid $8.20 an hour for a regular 40-hour week. His overtime rate is 1½ times his regular hourly rate. This week Perez worked his regular 40 hours plus 10 hours of overtime. What is his total pay?

3. 1.3 Weekly Time Card Time cards show the time you reported for work and the time you departed each day for a week. Procedure: ◦ Calculate the hours worked each day. ◦ Add them to find the total number of hours worked that week. ◦ Round to the nearest quarter hour if you didn’t work a full hour. Total Hours = Sum of Daily Hours Why is it important to keep an accurate time card? Date In Out In Out Hours Sunday Monday 9/15 8:15 A 12:15 P 1:00 P 5:00 P Tuesday 9/16 8:30 A 12:00 P 12:35 P 5:20 P Wednesday 9/17 8:28 A 12:05 P 12:30 P 4:30 P Thursday 9/18 8:15 A 1:45 P 2:15 P 4:59 P Friday 9/19 8:30 A 12:20 P 12:50 P 5:00 P Saturday Total

4. 1.4 Piecework If paid on a piecework basis, you receive a specified amount of money for each item of work that you complete. Is it better to be paid on an hourly rate or by piecework? (Wages by education) ◦ A recent survey shows the hourly wages for workers with different levels of education: less than high school: $8.03; high school: $10.60; some college: $11.92; college: $17.49; and advanced degree: $23.33 ◦ Calculate the annual salary (40 hours a week for 50 weeks) for each case. ◦ less than high school: ◦ high school: ◦ some college: ◦ college: ◦ advanced degree: Calculations: ◦ Total Pay = Rate Per Item x #of Items Produced Ramon works for National Cabinet Company. He is paid $8.00 for each cabinet he assembles. Last week he assembled 45 cabinets. This week he assembled 42. What is his pay for each week?

5. 1.5 Salary A fixed amount of money that you earn on a regular basis. ◦ May be paid weekly, biweekly, semimonthly or monthly. ◦ Annual salary is your total for the year.  52 weekly  26 biweekly  24 semimonthly  12 monthly Calculations: ◦ Salary Per Pay Period = Annual Salary # of pay periods per year Beth’s annual salary is $42,648. What is her monthly salary? weekly salary? An ad for a project manager posts a monthly salary of $5,480. What is the annual salary? What is the weekly salary?

6. 1.6 Commission Commission: An amount of money that you are paid for selling a product or service. Commission Rate: A specific amount of money for each sale or a percent of the total value of your sales. Straight Commission: When commission is the only pay you receive. Calculations: ◦ Commission = Total Sales x Commission Rate ◦ Gross Pay = Salary or Commission (If guaranteed a minimum salary… which is greater?) Milton sells real estate at a 7½% straight commission. Last week his sales totaled $290,000. What was his commission? Owen is guaranteed a minimum salary of $250 a week, or 7% of his total sales, depending on which is greater. What is his gross pay for a week in which his total sales were $3,614?

7. 1.7 Graduated Commission Your commission rate could increase as you sell more products and services. Graduated Commission: offers a different rate of commission for each level of sales achieved. Calculations: ◦ Total Graduated Commissions = Sum of Commissions for ALL Levels of Sales Anne sells appliances and receives a graduated commission. She earns 4% for the first $1,000 in sales, 6% for the next $2,000, and 8% on any sales over $3,000. If Anne’s sales for the last month were $9,840, what is her commission for the month?