When working at a job, your pay can be calculated in different ways: Chapter 4 Wages and Salaries hourly: paid by the hour You get more money if the job takes you longer Your employer must pay you minimum wage or more. If you work extra hours, you might even get paid more for overtime. salary: paid a certain amount to complete a job. does not depend on the number of hours worked. Jan 19 11:12 AM Jan 19 11:12 AM You may also be paid in different pay periods. Examples of pay periods are: weekly, bi-weekly, semi-monthly, and monthly. Weekly pay period = 52 paychecks in a year Ex. Brendan works at the Newfoundland Telegram. His annual salary is $35 650. Determine the following scenarios: a) If Brendan is paid monthly, how much will he gross monthly? Bi-weekly (every other week) pay period = 26 paychecks in a year Semi-monthly (twice a month) pay period = 24 paychecks in a year 12 pay periods per year: $35 650 / 12 = $2 970.83 / month Monthly pay period results in 12 paychecks in a year. Jan 20 8:31 AM Jan 20 9:19 AM 1
b) Paid Semi-Monthly? c) Paid Bi-Weekly? 24 pay periods per year : $35 650 / 24 = $1 485.42 twice a month 26 pay periods per year: $35 650/26 = $1 371.15 every two weeks Jan 20 9:20 AM Jan 20 9:21 AM d) Paid Weekly? I. M. Cool accepted a position advertised in the newspaper as a payroll clerk. Her annual salary will be $22,480. Determine each of the following: a. If she is paid monthly, what will her monthly gross pay be? 52 pay period per year: $35 650/52 = $685.58 Jan 20 9:24 AM Jan 20 9:28 AM 2
b. If she is paid biweekly, what will her biweekly gross pay be? c. If she is paid weekly, what will her weekly gross pay be? Jan 20 9:28 AM Jan 20 9:28 AM Daksha was offered two good jobs. The first job was an amusement park entertainer and he would be the voice of an animated character. He was told his gross salary would be $1832.50 paid monthly. The second company offered him a gross salary of $448.40 paid weekly to serve as an extra for an upcoming movie. Which job would provide the highest annual salary. How much more would he earn? There are 2 types of pay GROSS PAY and NET PAY. Gross Pay: the total amount paid to an employee each pay period. Gross pay includes regular pay, overtime pay, and other taxable earnings (such as reimbursements, bonuses,etc.). Jan 20 9:29 AM Jan 19 11:42 AM 3
Net Pay: an employee's pay after deductions have been taken out. Often called take home pay. Net pay is calculated by determining gross pay and subtracting items such as: taxes CPP (Canada Pension Plan) EI (Employment Insurance) Union dues, vacation pay, health insurance, etc. MINIMUM WAGE: the lowest amount a worker can be paid per hour. - depends on which province/territory you live in Province Minimum Wage As of 12/01/11 Jan 20 8:40 AM Jan 19 11:13 AM When you get paid, your employer gives you a pay statement that shows you information about how they calculated your pay. It is important to be able to understand your pay statement so you know if you are being paid the right amount. OVERTIME: when you work more than the regular number of hours per week. - you usually get time and a half which 1.5 times your regular wage PAY STATEMENT: a form an employer gives to workers to show earnings and deductions over a certain pay period Jan 19 11:14 AM Jan 19 11:15 AM 4
Calculating Gross Pay You work as an electrician and earn $24.68/hour. If it takes you 15 hours for one job, what will be your gross pay? You work in the trucking business. You charge $35.75/hr to haul materials for a local contractor. Last week you worked the following hours: 6 hours on Monday 8 hours on Tuesday 8 hours on Wednesday 12 hours on Thursday What was your gross income for the week? Jan 20 10:51 AM Jan 20 11:00 AM Claudette has the option of taking a job at an annual salary of $37, 500 or working a 40 hour week, 50 weeks a year for $18.25/hour. a) Calculate the weekly pay for each option. b) Which option gives Claudette the greatest gross income? Jill worked the following times as a cashier in a store: Monday Tuesday Wednesday Thursday Friday 9:00 11:308:30 11:30 8:00 12:00 8:30 12:30 8:00 12:30 12:30 3:00 12:00 4:00 12:30 4:30 1:30 7:00 1:00 2:00 How many hours did Jill work this week? If she earns $15.85/hour, how much was she paid? Jan 20 11:01 AM Feb 14 1:13 PM 5
Calculating Gross Pay with Tips Textbook page 174 175 #'s 1 9 Lillian works as a waitress and makes $10.50/hr plus tips. Last week she worked 36 hours and made $320 in tips. What was her gross pay for the week? Feb 14 8:19 AM Jan 20 8:52 AM Rick works as a waiter in his father's restaurant. In addition to regular pay of $11.25/hour, Rick keeps 65% of all the tips he receives. Calculate his gross weekly pay for a week in which he works 38 hours and receives $360 in tips. Bill works at a local restaurant. If he earns $7.50 per hour and earns tips of 10% of the meals he servers, how much would he earn in a week if he works 30 hours and serves meals worth $1750 during that week? Jan 20 10:17 AM Jan 20 11:32 AM 6
Joshua is a waiter at the local restaurant and is paid an hourly rate of $10 plus tips. Joshua earns 6% of the tips received in a shift. During his shift on Tuesday, $1500 in total was received in tips. Calculate Joshua s gross pay for Tuesday. Hannah is a hair stylist who works for a base hourly wage of $12. She works 35 hours per week and receives $160.50 in tips for the week. Calculate her gross pay. Jan 19 10:52 AM Jan 20 11:51 AM Calculating Gross Pay With Overtime Textbook page 178 #'s 1 8 You work for a construction company and earn $15.82/hr for a 37 ½ -hour work week. You are paid time and a half for any time that you work in excess of 37 ½ hours. If you work 42 1/4 hours during one week, how much will you earn? Feb 14 8:20 AM Jan 20 11:01 AM 7
Mary works four hours overtime and her regular pay is $6.70. What is her gross pay if she gets time and a half for overtime? Joe works four hours on Labour Day. If his rate of pay is $7.50 and he gets double time for working this holiday, what is his gross pay for that day? Jan 19 11:35 AM Jan 19 11:35 AM You work full time in a clothing store. These are the hours you worked this week: Monday - 7 Tuesday 7 Wednesday 8 Thursday 8 Friday 8 Saturday 4 May B. Dunn works the following hours during her company s busy season. The regular work week is 38 hours and time and a half is given for anything over the 38 hours. How much will your gross pay be if you make $10.50 per hour? Case #1: She is paid her regular hourly rate of 40 hours a week and time and a half for all hours over 40 in that week. Compute May B. Dunn s gross pay. Jan 19 11:35 AM Jan 19 11:36 AM 8
Case 2: She is paid her regular hourly rate for all hours worked from Monday to Friday with time and a half paid for Saturday hours and double time for Sunday hours. Compute May B. Dunn s gross pay. Case 3: She is paid her regular hourly rate for all hours worked. Jan 19 11:37 AM Jan 19 11:38 AM Case 4: She is paid her regular hourly rate for an eight-hour day with time and a half paid for all hours over eight in one day. Saturday and Sunday hours are paid at double time. The manager of a fast-food restaurant has asked you to work on Boxing Day for a four-hour shift. Employees are paid double time for this special holiday. You have already worked 20 hours this week. The rate of pay is $9.40 per hour. What is your gross pay? Jan 19 11:38 AM Jan 19 11:38 AM 9
Laura s regular rate at her job in a warehouse is $9.86 an hour. She works 8 hours a day. She has to work an extra shift on a holiday, and her overtime rate is time and a half. a) What are Laura s gross earnings for the holiday? Kevin worked 40 regular hours in a week at $12.80 per hour, and worked an additional 8 overtime hours in the same week at time and a half. Calculate Kevin's earnings for the week. b) What is her hourly rate on the holiday? Jan 20 11:21 AM Jan 20 11:33 AM Seth is paid $12.50 per hour for 40 hours a week. If he works more than 40 hours per week, he makes time and a half. If Seth worked 52 hours this week, what would his gross earnings be? Textbook page 182 183 #'s 1 7 Jan 19 10:51 AM Feb 14 8:20 AM 10
Calculating Gross Pay With Shift Premiums Some workers get paid a shift premium for working particular shifts (ie. 12 hour days, night shift, weekends, etc.) Alyson works at a local donut shop. Her regular pay is $10.00 per hour and she earns a shift premium of $1.00 per hour for hours worked between 12 a.m. and 8 a.m.. Alyson gets 1.5 times the regular rate of pay for overtime hours worked above 40 hours per week. Alyson s time schedule is shown below: Jan 20 11:12 AM Jan 19 10:35 AM Calculate: (i) Alyson s regular hours. (ii) Calculate Alyson s premium hours. Kathy works at a company that gives her an hourly wage of $21.50/hr. She also receives a shift premium of 3.5% If she works 30 hours during a week, what will be her gross pay for the week? (iii) Calculate Alyson s overtime hours. (iv) Calculate the gross pay for the week. Jan 19 10:44 AM Jan 20 11:38 AM 11
Crystal is working at a fish plant for the summer. She makes $12 per hour and she earns a shift premium of $2.00 per hour for hours worked between 12 a.m. and 8 a.m. She gets 1.5 times the regular pay for overtime hours worked above 40 hours per week. Her weekly time schedule is shown below: (i) Calculate Crystal s regular hours. (ii) Calculate Crystal s premium hours. (iii) Calculate Crystal s overtime hours. (iv)calculate the gross pay for the week. Jan 19 10:45 AM Jan 19 10:46 AM Betty works for a company that pays $16.75/hour plus 5.5% shift premium. In two week, Betty worked 75 hours. Calculate Betty's biweekly gross pay. John works 48 hours per week at an hourly rate of $16 per hour. After 40 hours he receives time and a half. John calculated his income using the following method. Step 1: Regular pay = 40 hrs x $16 = $640.00 Step 2: Overtime hours = 48-40 = 8hrs Step 3: Overtime pay = 8hrs x $16 = $128.00 Step 4: Gross pay = regular pay + overtime pay Step 5: Gross pay = $640.00 + $128.00 = $768.00 Is John s gross pay correct? If not, identify the step in which the error occurred and determine John s correct gross pay. Jan 20 11:52 AM Jan 19 10:53 AM 12
Assignment 1 Jan 19 11:49 AM Jan 19 11:49 AM Assignment 2 1. Briefly define the following: a) regular time b) time and a half c) ovetime d) gross pay e) rate f) double time 2. Determine the gross earning for the people below. Show your work. Feb 7 10:31 AM Feb 7 10:29 AM 13
3. Calculate the employee's gross pay if the regular work is 40 hours and time and a half is paid for all hours in excess of 40 hours per week. a) Find the total hours, regular hours, and overtime hours. b) Find the regular pay and overtime pay. c) Find the gross pay. Employee M T W T F Rate a) Casey 10 7 8 8.5 9 $5.85 b) Chelsea 10 8 7.5 8 8.75 $6.00 c) Eja 9 7 8.5 10 9 $7.95 d) Maggie 8 8 6 8 7.75 $8.85 e) Scooter 8 10 9 8 8 $9.77 Feb 7 10:32 AM Jan 20 10:18 AM Textbook page 184 #'s 1, 2 Feb 14 8:21 AM 14