1. GOALS BUSINESS MATH© Thomson/South-WesternLesson 1.1Slide 1 1.1Hourly Pay and Salary Calculate gross pay for hourly-rate employees Calculate gross pay for salaried employees

2. BUSINESS MATH© Thomson/South-WesternLesson 1.1Slide 2 Gross Pay for Hourly-Rate Employees Those who work for others are called employees. The person or company an employee works for is called an employer. An employee who is paid by the hour works for an hourly rate, which is a certain amount for each hour worked. The total amount of money that an employee is paid is called gross pay or gross wages.

3. BUSINESS MATH© Thomson/South-WesternLesson 1.1Slide 3 Gross Pay Calculation The gross pay earned by employees who are paid by the hour is found by multiplying the pay per hour by the hours worked. Hourly Rate × Number of Hours Worked = Gross Pay

4. BUSINESS MATH© Thomson/South-WesternLesson 1.1Slide 4 Gross Pay for Salaried Employees Some employees are paid a salary, which is a fixed amount of money for each time period worked. They are referred to as salaried employees.

5. BUSINESS MATH© Thomson/South-WesternLesson 1.1Slide 5 Gross Pay Calculation for Salaried Employees To find their gross pay, multiply their pay for a time period by the number of time periods worked. Pay per Time Period × Number of Time Periods Worked = Gross Pay