Skill 1: Wages

Vocabulary The amount of money paid each hour is called the hourly rate. The money that is received each payday is called the wages.

Examples; wages Ernie works 40 hours at an hourly rate of $8.25. Find Ernie’s wages for the week. Wages = (Hourly Rate) x (Hours) Wages = (8.25) x (40) Wages = $330.00 Annie works for an hourly rate of $10.50. Find Annie’s wages for a week where she works for 37 hours. Wages = (Hourly Rate) x (Hours) Wages = (10.50) x (37) Wages = $388.50

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Skill 2: Annual Wages

Vocabulary The amount of money earned during a full year is called annual wages.

Estimating Annual Wages There are 52 weeks in a year. People take vacation, sick days, ect. Estimate 50 work weeks. A full work week is 40 hours. Therefore, (50 weeks) x (40 hours) = 2000 hours per year.

Examples; annual wages Estimate the annual wages for Jill if she earns $8.50 per hour. Annual Wages = (Hourly Rate) x (2000) Annual Wages = (8.50) x (2000) Annual Wages = $17,000.00 per year Harry earns $9.75 per hour. Estimate his annual wages. Annual Wages = (Hourly Rate) x (2000) Annual Wages = (9.75) x (2000) Annual Wages = $19,500.00 per year

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Skill 3: Time Worked

Examples; time worked Manny arrived at work at 7:00 a.m. He left for lunch and 12:00 noon. He returned at 1:00 and worked until 3:00 p.m. Find the number of hours Manny worked and his wages for the day if he earns $12.30 per hour. Morning Hours: (Later time) – (Earlier time) = 12:00 – 7:00 = 5 hr 0 min Afternoon Hours: (Later time) – (Earlier time) = 3:00 – 1:00 = 2 hr 0 min Total Hours: (5 hr, 0 min) + (2 hr, 0 min) = 7 hours 0 minutes. Wages = (Hourly Rate) x (Hours) = ($12.30) x (7) Wages = $86.10

Examples; time worked Ralph worked 3 hours and 45 minutes in the morning and 4 hours and 30 minutes in the afternoon. Find the amount of time Ralph worked and his wages for the day if he earns $8.25 per hour. Total Time = (Morning) + (Afternoon) = (3 hr, 45 min) + (4 hr, 30 min) = 7 hr, 75 minutes Total Time = 8 hours and 15 minutes Wages = (Hourly Rate) x (Hours) = ($8.25) x (8.25) Wages = $68.06

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Skill 4: Overtime

Vocabulary Overtime is hours worked over 40 hours per week. People get paid more money on overtime. Time and a half means 1.5 the regular hourly rate. Double time means twice the regular hourly rate

Examples; overtime Sarah earns $7.00 per hour. What are her overtime rates? Time and a Half: (Hourly Rate) * (1.5) = (7)*(1.5) = $10.50 per hour at time and a half rate Double Time: (Hourly Rate) * (2) = (7)*(2) = $14.00 at double time rate

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Skill 5: Regular Wages Plus Overtime

Find Total Wages Step 1: Find Overtime Hours Step 2: Find Regular Wages Step 3: Find Overtime Rate Step 4: Find Overtime Wages Step 5: Regular Wages + Overtime Wages = Total Wages

Examples; total wages Dolly worked 44 hours at an hourly rate of $6.75. She was paid time and a half for her overtime. What were her total wages? Overtime Hours = (Hours) - (40) = (44) - (40) = 4 hours overtime Regular Wages = (Hourly Rate) x (Hours) = $6.75 x 40 = $270.00 Overtime Rate = (Hourly Rate) x (1.5) = ($6.75) x (1.5) = $10.13 Overtime Wages = (Hourly Rate) x (Hours) = ($10.13) x (4) = $40.52 Total Wages = (Regular Wages) + (Overtime Wages) = ($270) + ($40.52) = $310.52

Examples; total wages Harry worked 46 hours at an hourly rate of $8.25. He was paid double time for his overtime. What were his total wages? Overtime Hours = (Hours) - (40) = (46) - (40) = 6 hours overtime Regular Wages = (Hourly Rate) x (Hours) = $8.25 x 40 = $330.00 Overtime Rate = (Hourly Rate) x (2) = ($8.25) x (2) = $16.50 Overtime Wages = (Hourly Rate) x (Hours) = ($16.50) x (6) = $99.00 Total Wages = (Regular Wages) + (Overtime Wages) = ($330) + ($99) = $429.00

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Skill 6: Tips

Examples; total income Alice is a server and earns $6.65 an hour. In one week she earned $350 in tips while she worked for 40 hours that week. Find her total income for the week. Regular Wages = (Hourly Rate) x (Hours) = $6.65 x 40 = $266.00 Total Income= (Regular wages) + (Tips) = ($266) + ($350) = $616.00

Examples; total income Alan is a musician and earns $7.85 an hour. In one week he earned $250 in tips while he worked for 43 hours that week. Find his total income for the week. Regular Wages = (Hourly Rate) x (Hours) = $7.85 x 40 = $314.00 Overtime Rate = (Hourly Rate) x (1.5) = (7.85) x (1.5) = $11.78 Overtime Wages = (Overtime Rate) x (Overtime Hours) = ($11.78) x (3) = $35.34 Total Income= (Regular wages) + (Overtime wages) + (Tips) = ($314) + ($35.34) + ($250) = $599.34

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Skill 7: Piecework

Vocabulary When one gets paid according to the number of units of work that is completed is called piecework.

Examples; total income Carl works at a garment factory and sews buttons on shirts. For each shirt he completes that passes inspection, he earns $0.64. How much does he earn for 200 good shirts? Wages = (Piece Rate) x (# of Pieces) = $0.64 x 200 = $128.00

Examples; total income Gina stitches pants. She made 12 pairs on Monday, 8 on Tuesday, 14 on Wednesday, 18 on Thursday, and 10 on Friday. Suppose she earns $5.79 for each pair of pants. How much money did she earn during this week? # of Pieces = (M) + (T) + (W) + (Th) + (F) = 12 + 8 + 14 + 18 + 10 = 62 pants for the week Wages = (Piece Rate) x (# of Pieces) = $5.79 x 62 = $358.98

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Skill 8: Rounding Money

Examples; rounding money Round $135.65762 to the nearest cent. $135.65762 = $135.65762 Since 7 ≥ 5, we round the 5 up to 6 = $135.66

Examples; rounding money Round $7.892 to the nearest dime. Round to the nearest tenth. = $7.892 Since 9 ≥ 5, we round the 8 up to 9 = $7.90

Examples; rounding money Round $40.48 to the nearest dollar. Round to the ones place. = $40.48 Since 4 < 5, we leave the 0 a 0 = $40.00

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Skill 9: Salary

Vocabulary Payment of a fixed amount of money at regular intervals is called salary.

Regularity of Payments How often Paid Pay Periods per Year 52 Weekly 26 Biweekly 24 Semimonthly 12 Monthly 6 Bimonthly 4 Quarterly 2 Semiannually 1 Annually

Examples; salary Abe is paid a salary of $15,500 semiannually. How much does he earn in one year. Semiannually means twice per year = (Salary per pay period) x (# of pay periods) = ($15,500) x (2) = $31,000 per year

Examples; salary Jay earns a salary of $28,000. He gets paid biweekly. How many pay periods are there? How much does he earn each pay period. Biweekly means 26 times per year = (Salary per year) ÷ (# of pay periods) = ($28,000) ÷ (26) = $1,076.92 per year

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Skill 10: Percent and Decimals

Vocabulary Percent means part per one hundred. To work through percent problems you need to change the percent to a fraction or a decimal.

Examples; percent to decimal Change the percentage to a decimal. 8% = 08. % (move decimal 2 places to the left) = 0.08 9.5% = 09.5% (move decimal 2 places to the left) = 0.095 67% = 67.% (move decimal 2 places to the left) = 0.67

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Skill 11: Commission

Vocabulary Percentage is calculated by multiplying a percent by a number. Payment based on percentage of total sales is called a commission.

Examples; commission Commission = (Sales) x (Commission Rate) Mr. James sells $24,000 worth of computer equipment. His rate of commission is 1.8%. What is his commission on the sale? Commission = (Sales) x (Commission Rate) = (24,000) x (0.018) = $432.00

Examples; commission Commission = (Sales) x (Commission Rate) Mrs. Henry sells used cars one week she sold four cars worth a total of $59,750. Her rate of commission is 2.23%. What is his commission on her sales? Commission = (Sales) x (Commission Rate) = (59,750) x (0.0223) = $1332.43

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Skill 12: Salary Plus Commission

Vocabulary On some occasions people get a small salary and earn a bonus of commission on what they sell, salary plus commission.

Examples; salary plus commission Trish sells shoes at a department store. She earns a weekly salary of $175. Also, she gets 3% on all of her sales. Last week she sold $2,248 worth of shoes. How much did she earn last week? Commission = (Sales) x (Commission Rate) = (2,248) x (0.03) = $67.44 Total Earnings = (Salary) + (Commission) = (175) + (67.44) = $242.44

Examples; salary plus commission Tim sells computers at Best Buy. He earns a weekly salary of $150. Also, he gets 9.25% on all of his sales. Last week he sold $5,785 worth of computers. How much did he earn last week? Commission = (Sales) x (Commission Rate) = (5,785) x (0.0925) = $535.11 Total Earnings = (Salary) + (Commission) = (150) + (535.11) = $685.11

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Skill 13: Net Pay

Vocabulary The full earnings one gets on a paycheck is called the, gross pay. Money that is withheld from the gross pay are called, deductions. Net pay is the amount of money a worker receives after deductions are subtracted from the gross pay.

Examples; salary plus commission Dean earned $360.56. The following deductions were taken out of his paycheck: federal tax, $46.43; state tax, $19.78; Social Security tax, $22.32; Medicare, $5.22; and dues, $5.00. Find his total deductions and his net pay. Deductions = (Taxes) + (Medicare) + (Dues) =(46.43) + (19.78) + (22.32) + (5.22) + (5) = $98.75 Net Pay = (Gross Pay) - (Deductions) = (360.56) - (98.75) = $261.81

Examples; salary plus commission Diane earned $589.89. The following deductions were taken out of her paycheck: federal tax, $57.34; state tax, $21.87; Social Security tax, $18.23; and Medicare, $6.15. Find his total deductions and his net pay. Deductions = (Taxes) + (Medicare) + (Dues) =(57.34) + (21.87) + (18.23) + (6.15) + (0) = $103.59 Net Pay = (Gross Pay) - (Deductions) = (589.89) - (103.59) = $486.30

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