SHOW ME The MONEY Just how much do you know about how people get paid? UNIT 3 TAXES AND BANKING

Salary A set amount of money earned by an employee per year or other fixed length of time

Paycheck Your total pay for a specific time period minus deductions and taxes Salaried employees usually can expect the same amount of pay each pay period

Wages Employee earnings that are paid by the hour, day, or item Piecework is work for which wages are based on the number of items of pieces produced

Commission A fixed percentage or amount of profit given to an employee in exchange for making a sale A bonus is a sum of money paid to an employee in addition to regular pay

Tips Money given to an employee by customers in exchange for a service Workers who receive tips often aren’t paid a significant hourly wage

Fair Labor Standards Act One of many federal laws regulating employment Set of standards governing employee payment and compensation (including minimum wage) Equal pay provision Used to prevent discrimination against women, minorities, and older workers

Minimum Wage The lowest hourly rate an employer may legally pay most workers. US = $7.25/hour OH = $7.40/hour ($3.50 for tipped employees) Sub minimum wage can be applied to full-time students, employees who are younger than 20, and employees who are developmentally disabled

OHIO Minimum Wage Increases 1/1/12 »The Department of Commerce announced a 30-cent per hour increase, from $7.40 to $7.70 per hour. »Minimum wage for tipped employees decreases 15 cents per hour, from $3.85 to $3.70 per hour. »Employers can pay the federal minimum wage to minors ages 14 & 15-years old, and adults if the business’s gross revenue is $283,000 per year (previously $271,000).

Overtime According to FLSA, for a job that pays hourly wages, overtime is any work in excess of 40 hours per week Compensation is usually at least 1.5 times regular rate of pay Salaried workers do not receive overtime

Employment Classifications Full-time: Employees hold wage or salary jobs at least 35 hours per week, regardless of pay status Part-time: Less that 35 hours per week. May not receive benefits Temporary: Short-term assignments. May be paid by an employment agency Contract: Employees hired for a specific period of time for a specific purpose.

Benefits Compensation other than pay Usually only available to full-time employees Insurance (health and life) Savings and retirement Paid holidays, vacation, maternity leave, education, adoption/childcare.

Vested After a certain length of service (generally 3-5 yrs.) Allows employees access to employer contributions to savings and retirement accounts.