1. Employee Pay and Benefits
Chapter 6

2. W-4

3. Paystub

4. W-2

5. W-2

6. Gross Pay
Gross Pay – the agreed upon rate of pay before any deductions are made
Hourly Wages
Hourly wages times hours worked equal gross pay
$ x hrs = $200.00
Overtime
Hours work beyond regular hours
Standard workday is 8 hours
Standard workweek is 40 hours
According to the Fair Labor Standards Act, overtime is 1.5 time the regular hourly pay
$5.00 regular pay = $7.50 overtime
40 hours x $ = $200.00
5 hours x $ = $
Gross Pay = $237.50

7. 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

8. Deductions
Amounts such as social security, federal income tax, and state income tax that by law are deducted from your gross pay
Some amounts are not required by law but done by the employer such as union dues, insurance payments, retirement
Other amounts are optional such as IRA’s, mutual funds, charitable donations,
What other deductions can you think of
By law your pay check must have a detailed list of all deductions

9. Net Pay What is left after all deductions have been taken out
Often called take home pay
Should save pay stubs to compare with W-2 at end of year

10. Benefits and Incentives
Some are optional, some required by law
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 Often without pay Maternity
Completing education
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. 8 Things Employees Need 1. Freedom 2. Targets 3. Mission
4. Expectations
5. Input
6. Connection
7. Consistency
8. Future

16. Freedom
Best practices can create excellence, but every task doesn't deserve a best practice or a micro-managed approach. (Yes, even you, fast food industry.)

17. Targets
Goals are fun. Everyone—yes, even you—is at least a little competitive, if only with themselves
Targets create a sense of purpose and add a little meaning to even the most repetitive tasks
Without a goal to shoot for, work is just work. And work sucks

18. Mission
We all like to feel a part of something bigger. Striving to be worthy of words like "best" or "largest" or "fastest" or "highest quality" provides a sense of purpose
Let employees know what you want to achieve, for your business, for customers, and even your community. And if you can, let them create a few missions of their own
Caring starts with knowing what to care about—and why

19. Expectations
While every job should include some degree of latitude, every job needs basic expectations regarding the way specific situations should be handled. Criticize an employee for expediting shipping today, even though last week that was the standard procedure if on-time delivery was in jeopardy, and you lose that employee
Few things are more stressful than not knowing what your boss expects from one minute to the next
When standards change make sure you communicate those changes first. When you can't, explain why this particular situation is different, and why you made the decision you made

20. Input
Everyone wants to offer suggestions and ideas. Deny employees the opportunity to make suggestions, or shoot their ideas down without consideration, and you create robots -- Robots don't care
Make it easy for employees to offer suggestions. When an idea doesn't have merit, take the time to explain why. You can't implement every idea, but you can always make employees feel valued for their ideas.

21. Connection
Employees don’t want to work for a paycheck; they want to work with and for people.
A kind word, a short discussion about family, a brief check-in to see if they need anything... those individual moments are much more important than meetings or formal evaluations.

22. Consistency
Most people can deal with a boss who is demanding and quick to criticize... as long as he or she treats every employee the same.
While you should treat each employee differently, you must treat each employee fairly. (There's a big difference.)
The key to maintaining consistency is to communicate. The more employees understand why a decision was made the less likely they are to assume favoritism or unfair treatment.

23. Future
Every job should have the potential to lead to something more, either within or outside your company.
For example, I worked at a manufacturing plant while I was in college. I had no real future with the company. Everyone understood I would only be there until I graduated.
One day my boss said, "Let me show you how we set up our production board."
I raised an eyebrow; why show me? He said, "Even though it won’t be here, some day, somewhere, you'll be in charge of production. You might as well start learning now."
Take the time to develop employees for jobs they someday hope to fill—even if those positions are outside your company.
Employees will care about your business when you care about them first.