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

2. 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.

3. How Would You Define Benefits?
Rewards
Incentives
Things of value

4. 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

5. 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 $ selling $6850 worth of electronic equipment. Find the commission rate.

6. 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

7. 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

8. 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 =
Overtime pay 5*(1.5*8.9) = 66.75
Total gross pay
= $422.75

9. 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 =
Overtime pay 11*(1.5*11.90)
(1.5*11.90) = 17.85
17.85*12 =
Total gross pay
= $654.20

10. 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

11. 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

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

13. 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

14. 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

15. 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