1. Employee Pay and Benefits
Chapter 6

2. W-4

3. Gross/Net Pay
Gross Pay – the amount of money you earn before any deductions are made
Net Pay – the amount you receive on your paycheck, also called take home pay
Hourly Wages – the agreed upon rate of pay
Hourly wages times hours worked equal gross pay
$ x hrs = $360.00

4. Overtime Pay Standard workday is 8 hours Standard workweek is 40 hour
Overtime Hours – hours earned above 40 hours/week
Overtime
According to the Fair Labor Standards Act, overtime is 1.5 times the regular hourly pay
$9.00 regular pay = $13.50 overtime pay ($9.00 * 1.5)
40 hours x $ = $360.00
5 hours x $ = $
Gross Pay = $427.50

5. Salary Monthly Salary Annual Salary
Get paid same no matter how many hours worked
Some employer do pay an overtime minimum wage for anything over 40 hours
Annual Salary
Divided into equal amounts
Either 24 or 26 payments per year

6. Deductions Required by law: Elective Deductions:
Federal Income Tax
State Income Tax
Social Security (FICA) Tax
Elective Deductions:
Union dues
Health insurance payments
Retirement such as IRAs
Investments like mutual funds
Charitable donations
By law your pay check must have a detailed list of all deduction

7. Paystub

8. W-2

9. W-2

10. Benefits and Incentives
Profit Sharing
Paid Vacations and Holidays
Employee Services
Sick Pay
Leaves of Absence
Insurance
Bonuses and Stock Options
Travel Expenses
Pension and Savings Plans
Discounted Shopping
Wellness Programs

11. Paid Vacations and Holidays
Profit Sharing
Allows employees to receive a portion of the company’s profit at the end of the year
Employees who profit share identify closely with the company, more likely to reduce waste, and increase productivity
Paid Vacations and Holidays
People working holidays are usually paid double

12. Employee Services Sick Pay Discounts Social and recreational programs
Free parking
Tuition reimbursement
Daycare centers
Free counseling
Sick Pay
3 to 10 days per year

13. Leaves of Absence Insurance Without pay usually Maternity
Completing education
Illness (employee or family)
Injury
Family and Medical Leave Act
Get up to 12 weeks unpaid leave
Employers must maintain health coverage
Must reinstate job
Insurance
Health Insurance
Life Insurance
Dental Insurance
Vision Insurance

14. Bonuses and Stock Options
Bonuses for no serious accidents
Goal reaching bonuses
By shares at certain prices for certain amount of time
Pension and Savings Plans
401k
Sometimes employers with match what the employee puts in the account
Travel Expenses
Company car or paid mileage for using own car
Food, motel, and other expenses are paid for

15. Flextime or work from home
Wellness programs
Employees discounts on their monthly health insurance premiums
Cash rewards
Discounted or free gym memberships
Offering healthier food options at work
Smoking cessation and weight-management programs
Flextime or work from home