1. Chapter 5
Payroll

2. Wages and Salaries How does Gross Earning differ from Net pay?
Gross earning his how much your salary is or how much you get paid per hr * hours worked
Net pay is after deductions are taken out (i.e. benefits, taxes, retirement, etc..)

3. Time Charts You clock in and out Tally up total hours
Display overtime hours
What is time and a half?

4. Types of bonus pay Overtime hours
Shift differential (working odd hours)
Comp time (extra free days)
Premium payment plans (i.e. holidays)

5. Piecework Rate Gross earnings = pay per item * number of items
Can be by units
By miles
Can be staggered (1-100 is one rate, is a higher rate, etc….)

6. Larger of hourly pay or piecework
You might be getting paid $10 per hour and work 8 hours
You might get $1 per piece and make 90 during your shift
Piecework rate would be higher

7. Commission Rate Some people are paid straight commission
Some are paid hourly and commission
This can be worked into your salary
Commission might be taxed differently

8. Social Security Tax 6.2% of gross earnings Up to a $102,000
More you make the more you pay
Also known as FICA tax

9. Medicare Tax Comes from gross pay 1.45%
Gets combined with FICA before then subtracted from Gross Pay

10. Example I have a salary of $98,000
How much do I pay in Social Security Tax?
How much do I pay in Medicare?
How much is left?