Compute payroll deductions and net pay. Identify optional and required employee benefits and recognize their value.
Gross pay includes your regular pay plus overtime wages earned during that pay period. Gross Pay: The total amount you earn before any deductions are subtracted. Overtime: Time worked beyond the regular hours.
1. Determine your hourly wage. 2. Determine the number of hours you worked during the pay period. 3. Multiply your hourly wage by the number of hours worked to calculate your gross pay amount.
M.J. Smith works for $6.50 an hour. They worked 40 hours during this pay period. What is M.J.’s gross pay for this pay period? $6.50 x 40 = $260.00
1. Determine your hourly wage. 2. Determine the number of regular time hours you worked during the pay period. 3. Determine your overtime pay rate (hourly wage x 1.5). 4. Determine how many overtime hours you worked during the pay period. 5. Multiply the number of overtime hours worked by your overtime pay rate. 6. Add your regular pay to your overtime pay to determine your total gross pay.
During the next pay period, M.J. Smith worked 40 hours at $6.50 an hour. In addition to the regular 40 hours worked, she also worked 5 hours of overtime during this pay period. What is her total gross pay with overtime? $6.50 x 40 = $260.00 $6.50 x 1.5 = $9.75 $9.75 x 5 = $48.75 $260.00 + $48.75 = $308.75
1. Determine your annual salary. 2. Determine how many time you will receive a paycheck during the year. 3. Divide your annual salary by the number of pay periods there are during the year.
T.S. Jones works for $24,000 per year. They get paid every two weeks. What is T.S. Jones’s gross pay each pay period? 52 weeks / 2 = 26 pay periods $24,000 x 26 = $923.08
Deductions are subtracted from gross pay to determine net pay. Deductions: Amounts subtracted from your gross pay. Net Pay: Gross pay minus deductions.
1. Determine hourly gross pay. 2. Add together the amount of each deduction. 3. Subtract gross pay from the total amount of deductions.
M.J. Smith’s gross pay for this pay period was $260.00. The following deductions were taken out: Federal Tax ($13.00), Medicare ($4.48), Savings Account ($20.00), Health Insurance ($11.00), Union Dues ($2.50). What is M.J. Smith’s net pay for this pay period? $13.00 + $4.48 + $20.00 + $11.00 + $2.50 = $50.98 $260.00 - $50.98 = $209.02
1. Determine your total gross pay plus overtime. 2. Add together the amount of each deduction. 3. Subtract your total gross pay plus overtime from the total amount of deductions.
During the next pay period, M.J. Smith worked 5 hours of overtime which made her total gross pay $308.75. The following deductions were taken out of her pay: Federal Tax ($14.50), Medicare ($5.58), Savings Account ($20.o0), Health Insurance ($11.00), Union Dues ($2.50). What is M.J. Smith’s net pay? $14.50 + $5.58 + $20.00 + $11.00 + $2.50 = $53.58 $308.75 - $53.58 = $255.17
Determine the gross pay for each pay period. Add together the amount of each deduction. Subtract the total amount of deductions from the gross pay amount.
T.S. Jones’s gross pay this pay period was $923.08. The following deductions were taken out: Federal Tax ($78.00), Medicare ($26.88), Savings Account ($20.00), Health Insurance ($11.00), Union Dues ($2.50), Life Insurance ($3.80). What is T.S. Jones’s net pay for this pay period? $78.00 + $26.88 + $20.00 + $11.00 + $2.50 + $3.80 = $142.18 $923.08 - $142.18 = $780.90
Self-employed people pay both the employee and employer portions of social security and Medicare. Self-Employment Tax: The total social security and Medicare tax, including employer-matching contributions paid by people who work for themselves. Self-employed people pay 12.4% of their gross income. for the social security tax and 6.2% of their gross income for the Medicare tax which totals 15.3% of their gross income.
Benefits: Forms of employee compensation in addition to pay. Cafeteria-style plans allow employees to choose the benefits that best meet their needs. Benefits in addition to pay may include: Profit Sharing: Incentive Pay: Money offered to encourage employees to strive for higher levels of performance. Paid Time Off Employee Services Insurance Plans Bonuses Stock Options Retirement Plans Vested: Entitled to the fill retirement account.
Explain several flexible job arrangements. Describe the role of unions and professional organizations in the workplace.
Flextime, a compressed workweek, job rotation, job sharing, permanent part-time jobs, and telecommuting offer employees flexibility. Flextime: Allow employees to choose their working hours within defined limits. Compressed Workweek: A work schedule that fits the normal 40-hour week into less than 5 days. Job Rotation: A job design in which employees are trained to do more than on specialized task. Job Sharing: A job design in which two people share one full-time position.
Labor unions negotiate the terms of work contracts with employers on behalf of their members. Labor Union: A group of people who work in the same or similar occupations, organized for the benefits of all employees in these occupations. Functions of Unions: Collective Bargaining: The process of negotiating the terms of employment for union members. Seniority: A policy in which the last workers hired will be the first fired when jobs must be cut.
Professional organizations serve people in highly skilled occupations. Professional Organization: An organization of people in a particular occupation that requires considerable training and specialized skills. These organization maintain standards and keep members current in their fields. Lobbying: The process of trying to influence public officials to take political action the benefits the profession.
Ryan, J. (2006). “Managing your personal finances; 5 th ed.” Thomson South-western; Mason, Ohio