1. Chapter 1
Gross Income

2. Section 1.1- Hourly Pay
In this section, we want to focus on jobs that pay their employees PER HOUR.
The Hourly Rate is a fixed amount of money paid for each hour of work

3. Hourly Pay
Suppose Greg works at a gas station and earns $8 an hour. If Greg works 7 hours today, how much money will he earn???
$8 an hour multiplied by 7 hours of work equals….$56 dollars

4. Hourly Pay
Straight-Time Pay is the total amount of money earned for a pay period at the regular hourly rate
In our last example, Greg’s straight-time pay was $56

5. Hourly Pay
Sophia works as a dance instructor. She earns $26 per hour. Last week she worked 20 hours, and this week she worked 24½ hours. What is her straight-time pay for each week?

6. Hourly Pay Summary… Questions?!?!? Complete Practice Worksheet #1-10
Straight-Time Pay = Hourly Rate x Hours Worked
Questions?!?!?
Complete Practice Worksheet #1-10

7. Section 1.2 – Overtime Pay
Most people have a regular amount of hours that they work each week.
Whenever you work more than your regular hours, you might receive overtime pay
Overtime Pay is extra pay for hours worked beyond regular hours

8. Overtime Pay There are usually two different types of overtime pay
Time and a Half
An overtime pay rate of 1½ times the regular hourly rate
Double Time
An overtime pay rate of two times the regular hourly rate, often paid for working Sunday’s and holidays

9. Overtime Pay – Time and a Half
Suppose Henry makes $7.50 at a bowling alley. Henry usually works 40 hours a week. This week however, he worked 44 hours. If Henry gets paid time and a half for overtime hours, what is his overtime pay?
How many overtime hours did Henry work?
What is his new Overtime Rate?

10. Overtime Pay – Time and a Half
We found that Henry’s overtime rate was $11.25 an hour and that his overtime pay was $45
We can now calculate Henry’s Total Pay
Total Pay = Straight-time Pay
+ Overtime Pay

11. Overtime Pay – Double Time
Amanda works at a bakery and earns $10 an hour. She regularly works 40 hours a week. This week, she worked 42½ hours. If Amanda gets paid double time for overtime hours, what is her Total Pay?

12. Overtime Pay Summary… Total Pay = Straight-time Pay
Overtime pay = overtime rate x overtime hours
Total Pay = Straight-time Pay
+ Overtime Pay
Complete Worksheet problems #11-25

13. The Pennsylvania overtime law requires that non-exempt employees receive overtime pay equal to 1.5 times their regular hourly pay for any hours worked over 40 in a week.
Exempt employees include: seamen, salesmen or mechanics in the automobile, truck, or aircraft industries, taxicab drivers, employees of movie theaters, and people who process maple syrup.

14. PA Child Labor Laws
Minors ages may not be employed before 7 am or after 7 pm, except during a school vacation period a minor can be employed until 9pm.
Cannot be employed more than 3 hours on a school day, or 18 hours a school week (40 hours with no school)

15. PA Child Labor Laws
Minors ages may not be employed before 6 am or after 12 midnight during a regular school week.
Cannot be employed more than 8 hours a day or more than 28 hours per week during a regular school week.
No more than 10 hours a day or 48 hours a week during vacation. Hours beyond 44 must be voluntarily agreed by the minor.

16. Section 1.3 – Weekly Time Card
Weekly Time Card is a record of the time you report for work and the time you depart each day of the week
Your daily hours are usually broken up into two parts: hours before lunch and hours after lunch
TOTAL HOURS = Sum of Daily Hours

17. Weekly Time Card
Suppose Sarah began work at 8:15 and stopped to eat lunch at 12:15. She then began working again at 12:30 and finished her day at 4:45. How many hours did Sarah work?
USE SUBTRACTION! Start with your END TIME and subtract your START TIME
12:15 – 8:15 = 4:00 or 4 hours
4:45 – 12:30 = 4:15 or 4.25 hours
ADD the two together
4 hours hours = 8.25 hours

18. Weekly Time Card

19. Weekly Time Card hints…
When the start time is prior to 1:00pm and the end time is 1:00pm or later, add 12:00 to the end time
When subtracting 1:35 from 6:34, we want to rewrite 6:34 as 5:94 (borrow from the hour column)
Also, we should round each half of a day to the nearest quarter of an hour.
If you work 4 hours and 40 minutes in the morning, this rounds to 4 hours 45 minutes

20. Practice with Timesheets
Timecards\Weekly time sheet practice 1.xlsx
Quiz tomorrow

21. Section 1.4 - Piecework Some jobs pay on a piecework basis
Piecework is a specified amount of money paid to an employee for each item of work completed

22. Piecework With a piecework basis…
Total Pay =(Rate per Item) x (# of Items Produced)
For example, if you get paid $5 for every car you wash and you clean 12 cars, you would earn $60

23. Piecework
Carpenter Joe is paid $9 for every cabinet he assembles. Last week he assembled 35 cabinets. This week, he assembled 42 cabinets. What is Joe’s pay for each week?
Week 1: $9×35=$315
Week 2: $9 ×42=$378

24. Piecework
Gary delivers fruit for Edible Arrangements. He has the option of getting paid with an hourly rate or on a piecework basis. He will earn either $10 per hour or $5 per delivery. Most weeks he works 24 hours and makes about 50 deliveries. Which type of pay should Gary choose to receive?
Per Hour: $10 𝑝𝑒𝑟 ℎ𝑜𝑢𝑟 ×24 ℎ𝑜𝑢𝑟𝑠=$240
Piecework: $5 𝑝𝑒𝑟 𝑑𝑒𝑙𝑖𝑣𝑒𝑟𝑦 𝑥 50 𝑑𝑒𝑙𝑖𝑣. =$250
Gary should choose to get paid on a piecework basis

25. Piecework summary
Concept Check #1-10

26. Did you know…
U.S. Bureau of the Census Current Population Survey found average hourly wages for different levels of education…
Less than high school: $8.03
High school: $10.60
Some college: $11.92
College: $17.49
Advanced degree: $23.33
Find annual salary for 40 hours a week, 50 weeks a year

27. Would you rather get paid…
$ every week
$ every two weeks
$ twice a month
$1, one a month
$20,000 once a year

28. Section 1.5 – Salary
Instead of paying an hourly wage, many companies’ employees earn a salary
Salary is a fixed amount of money earned on a regular basis and received weekly, bi-weekly, semi-monthly, or monthly.

29. Salary Salary per pay period = Annual Salary _
# of pay periods per year
Annual Salary is your total salary you earn during the year.

30. Salary There are 4 types of ways you can be paid your salary…
Weekly – 52 pays
Bi-Weekly – 26 pays (every other week)
Monthly – 12 pays
Semi-Monthly – 24 pays (twice a month)

31. Salary – Example
James Ford is an attorney. His annual salary is $102,450. What is his monthly salary? What is his weekly salary? Biweekly? Semimonthly?

32. Salary - Example
Charles Barkley’s weekly salary is $1028. What is his annual and semimonthly salary?

33. Salary
Questions???
Concept Check:
pg. 102 #1-12