1. Practical Math Applications © Cengage Learning/South-Western Practical Math Applications © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Payroll 5.1Gross Earnings 5.2 Gross Pay for Various Compensation Methods Slide 1 5

2. Practical Math Applications © Cengage Learning/South-Western Practical Math Applications © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5.1 Gross Earnings 1. Identify terms used for computing gross earnings. 2. Calculate gross pay for common pay periods. 3. Calculate gross earnings for straight time, overtime, and double time. Slide 2 OBJECTIVES

3. Practical Math Applications © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. compensation double time Fair Labor Standards Act (FLSA) gross earnings hourly wage (hourly rate) overtime straight time/regular time time and one-half Slide 3 Key Terms

4. Practical Math Applications © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Assume you are paid $24,960 per year. The following shows what you would earn for each of the common pay periods. STEPS Weekly: $24,960 ÷ 52 = $480 Biweekly: $24,960 ÷ 26 = $960 Semimonthly: $24,960 ÷ 24 = $1,040 Monthly: $24,960 ÷ 12 = $2,080 Slide 4 Objective 2 Write a percent as a decimal. O BJECTIVE 2 Calculate gross pay for common pay periods. Example

5. Practical Math Applications © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Juan Oliver works 40 hours per week. He is paid $9.50 per hour. Compute his weekly salary (gross earnings). STEPS Multiply the number of hours worked by the hourly rate. 40 × $9.50 = $380 per week Slide 5 Objective 2 Write a percent as a decimal. O BJECTIVE 3 Calculate gross earnings for straight time, overtime, and double time. Example

6. Practical Math Applications © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Tomoki Ryomoto worked 48 hours this week. Tomoki receives $16 per hour straight time. What does he earn for 8 hours of overtime? Determine Tomoki’s gross earnings. STEPS Slide 6 Objective 2 Write a percent as a decimal. O BJECTIVE 3 Calculate gross earnings for straight time, overtime, and double time. Example

7. Practical Math Applications © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Shawn Williams worked 52 hours in one week—8 hours each weekday, 8 hours overtime on Saturday, and 4 hours double time on Sunday, which was New Year’s Day (a holiday). His hourly rate is $17.50. Compute Shawn’s gross earnings. STEPS Multiply the straight-time hours worked by the hourly rate. 40 × $17.50 = $700 Slide 7 Objective 2 Write a percent as a decimal. O BJECTIVE 3 Calculate gross earnings for straight time, overtime, and double time. Example

8. Practical Math Applications © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Shawn Williams worked 52 hours in one week—8 hours each weekday, 8 hours overtime on Saturday, and 4 hours double time on Sunday, which was New Year’s Day (a holiday). His hourly rate is $17.50. Compute Shawn’s gross earnings. STEPS Multiply the number of overtime hours by the hourly rate and by 1.5. 8 × $17.50 × 1.5 = $210 Slide 8 Objective 2 Write a percent as a decimal. O BJECTIVE 3 Calculate gross earnings for straight time, overtime, and double time. Example

9. Practical Math Applications © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Shawn Williams worked 52 hours in one week—8 hours each weekday, 8 hours overtime on Saturday, and 4 hours double time on Sunday, which was New Year’s Day (a holiday). His hourly rate is $17.50. Compute Shawn’s gross earnings. STEPS Multiply the number of double-time hours by the hourly rate and by 2. 4 × $17.50 × 2 = $140 Slide 9 Objective 2 Write a percent as a decimal. O BJECTIVE 3 Calculate gross earnings for straight time, overtime, and double time. Example

10. Practical Math Applications © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Shawn Williams worked 52 hours in one week—8 hours each weekday, 8 hours overtime on Saturday, and 4 hours double time on Sunday, which was New Year’s Day (a holiday). His hourly rate is $17.50. Compute Shawn’s gross earnings. STEPS Add straight-time, overtime, and double-time amounts. $700 + $210 + $140 = $1,050 Slide 10 Objective 2 Write a percent as a decimal. O BJECTIVE 3 Calculate gross earnings for straight time, overtime, and double time. Example

11. Practical Math Applications © Cengage Learning/South-Western Practical Math Applications © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5.2 Gross Pay for Various Compensation Methods 1. Identify terms used for various compensation methods. 2. Calculate compensation by salary. 3. Calculate compensation by salary plus commission. 4. Calculate compensation by piecework. Slide 11 OBJECTIVES

12. Practical Math Applications © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. commission piecework piece rate returned merchandise salaried net sales Slide 12 Key Terms

13. Practical Math Applications © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Nadia Manez is an elementary school teacher working for the Lakemont Independent School District (LISD). Nadia signed a contract with LISD for an annual salary of $29,800, to be paid in 12 equal payments. What are Nadia’s monthly gross earnings. STEPS Divide the annual salary by 12 (months). Round the answer to the nearest dollar. $29,800 ÷ 12 = $2,483 Slide 13 Objective 2 Write a percent as a decimal. O BJECTIVE 2 Calculate compensation by salary. Example

14. Practical Math Applications © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Gary’s salary is $500 per week. This week his total sales were $2,500, and $75 in merchandise was returned. His quota is set at $1,700. His commission is based on 6% of sales minus returned merchandise after he has met his quota. Calculate Gary’s gross earnings for the week. STEPS Solution is shown on the next slide. Slide 14 Objective 2 Write a percent as a decimal. O BJECTIVE 3 Calculate compensation by salary plus commission. Example

15. Practical Math Applications © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Salary: $500 Total sales: $2,500 Returns: $75 Quota: $1,700 Commission: 6% Slide 15 Objective 2 Write a percent as a decimal. O BJECTIVE 3 Calculate compensation by salary plus commission. Example

16. Practical Math Applications © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Toby Jennings is compensated based on the number of lines he fills from an order form. He is paid a piece rate of $0.04 for each line he fills. Toby filled 15,193 line items this pay period. What is his pay (gross earnings)? STEPS Multiply total lines completed by piece rate per line. 15,193 × $0.04 = $607.72 Slide 16 Objective 2 Write a percent as a decimal. O BJECTIVE 4 Calculate compensation by piecework. Example