Download - What is the major reason people work?
What is the major reason people work?
Love of your job? To sharpen your soft skills? To meet new and exciting people?NO – to make money!!!
Focus: How to calculate different types of pay?
Chapter 8 section 2
Compelling Why!If you are to receive a salary, do you know how to calculate your gross pay for each pay period?What kind of information do you need?
Hourly Workers? Are you entitled to overtime? How do you calculate OT?
WAGESFirst 40 hours is at regular pay rate.
Anything over 40 hours is at 1.5
Nonexempt employees receive overtime.
Hourly wage example
Jim worked 45 hours last week He makes $8.90 an hourWhat is his gross pay?
Regular pay 40*8.9 = 356.00Overtime pay 5*(1.5*8.9) = 66.75
Total gross pay 356.00 + 66.75 = $422.75
Now – you try…Hourly wage example
Judy worked 52 hours last week He makes $11.90 an hourWhat is his gross pay?
Regular pay 40*11.90 = 440.00Overtime pay 11*(1.5*11.90)(1.5*11.90) = 17.8517.85*12 = 214.20
Total gross pay440.00 + 214.20 = $654.20
SALARYExempt employees - No matter how many
hours you work, you get paid the same amount each pay period.
52 weeks in a yearIf paid every two weeks 26 pay periodsIf paid twice a month 24 pay periodsIf paid once a month 12 pay periods
SalarySean’s salary is $42,500 a yearWhat 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
$1,634.62 $1,770.83 $3,541.67
Commission
Incentive to works because pay is directly related to the amount of work a person does
Ie. Sales person and Production workers
Commission Car Sales Person earns 9% commission for each car soldSold 2 carsCar 1 - $21,790Car 2 - $25,650How much does the Salesperson earn?
$21,790
+ 25,650
47,440
x _ .09
$4,269.60
Base + incentiveJill works at Best Buy and has a bi-weekly salary of $1,000. She earns 3% of the merchandise she sells. She sold $6,000 in merchandise this pay period.What is Jill’s gross pay?$1,000 + (.03 x 6000) $1,000 + 180 = $1,180.00
Incentive Plans
Profit sharing Workers receive a share of the
company’s profits.
Performance Bonuses Companies pay bonuses to workers
who increase the quantity or quality of their work.
Bell work
Besides pay – what other expectations do you have from your employer when you get a full-time job.
Fringe benefits
Financial compensation in addition to wages and salaryCan cost a company 20% to 40% of a employees salary to provide benefitsie an employee is paid $40,000This employee’s fringe benefits could cost between $8,000 and $16,000 a year
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, and bereavement days
Absences for the birth of a child
Graphic OrganizerGraphic Organizer
Chapter 8 • Beginning a New Job Succeeding in the World of Work
INCENTIVEPLANS
•Bonuses•Stock options•Profit sharing
BENEFITS•Health insurance•Paid vacations
PAYMENT•Salary•Hourly wages
•Retirement plan•Convenience benefits
•Overtime•Commission
Employee CompensationEmployee CompensationEmployee CompensationEmployee Compensation
THOSE REQUIRED BY LAW
Unemployment compensation
Worker’s compensation
Social Security
Convenience Benefits
Services that make worker’s lives easierflexible work hoursfitness centerOn-site childcare
What can you think of?
Cafeteria Plan
Not a benefit but a policy that lets employees chose the benefits they want.
ie an employee may choose disability insurance over vacation time.