1 -1 Hourly Rates and Overtime What You ll

1 -1 Hourly Rates and Overtime What You’ll Learn: §How to find a wage based on an hourly wage with or without overtime

Hourly Rates • An employee is any person who earns money, or wage. The employer is the person who pays the employee. • The Hourly rate is a fixed amount an employee earns per hour.

How to Find regular weekly pay • Hourly rate X regular hours = regular pay

Example: Carol earns $6. 50 per hour. She works 6 hrs each day Tuesday through Saturday. How much does she earn in a week • Find total hours worked in a week – Hours per day X Day per week = Hrs/week – 6 X 5 = 30 hrs • Find total pay in a week – Total hours – 30 X X Hourly Wage = pay/week $6. 50 = $195. 00

Complete the Table Below Name Mon. Tues. Wed. Thur. Fri. Sat. Hrs. worked Wage Scott Farmer 8 8 8 0 $7. 25 Carl Mama 5 4 4 0 4 8 $8. 25 Earnings

Overtime • Many employers pay a higher wage for overtime work – Usually overtime is awarded for any time worked past 40 hrs. in a given week or 8 hrs in a given day

Example: on a normal week an employee receives $6. 30 / hr. and works 40 hrs each week. One week the employee worked 48 hrs. How much will the employee earn with overtime? ? • Find the # of overtime hours – 48 hrs – 40 hrs = 8 hrs • Find the regular earnings – 40 hrs X $6. 30 = $252. 00 • Find the overtime rate (regular wage X 1. 5) – 6. 30 X 1. 5 = $9. 45 • Find the overtime earnings – $9. 45 X 8 = $75. 60 • Add the regular and overtime earnings – $252. 00 + $75. 60 = $327. 60

Complete the Chart Job Regular Wage Clerk $7. 18 Regular Hours Overtime Hours 40 5. 5 Laborer $22. 00 40 10 Nurse $12. 25 40 3. 5 Overtime Regular/ Total Rate Overtime Earnings

Critical Thinking • Text page 44 –#1 -8

Wages and Tips • Workers in many services earn tips as partial payment of service due to very low hourly wages. – Waiters, drivers, hair stylists, bell hops, ect… • By law employees must report the amount of tips to their employer due to income tax issues.

Example: Rob is a waiter in a restaurant. He works about 7 hrs/day at $2. 10 /hr. On average he earns about $45 in tips. About how much does he earn each week if he works five days a week? ? • Determine the daily wage with tip – $2. 10 X 7 + $45 = $59. 70 • Determine the weekly wage – $59. 70 X 5 = $298. 50

1 -2 to 1 -3 Pay Periods & Salary What You’ll Learn: §To find weekly, monthly, and yearly salary §To find weekly earnings with wages and tips

Salary • Some employees earn a salary, or fixed amount, during each pay period. • Salary may be paid monthly, semimonthly, biweekly, or weekly – These periods between checks are called pay periods • • Monthly >> 12 /year Semimonthly >> 24 Biweekly >> 26 Weekly >> 52

Salary • Amount of pay = annual salary / number of pay periods • Annual salary = amount of paycheck X number of pay periods

Class Exercise Annual Salary $ 24, 000 Pay Period $28, 647 Biweekly $9, 828 Weekly $21, 110 # of Pay Periods Amount of paychecks semimonth Monthly $956. 37 26 $539. 16

1 -4 Commission What You’ll Learn: §To find the commission based on an amount of sale §To find the total earnings of salary plus commission

Commission • Commission is a fee on a percentage basis for work dons. Many persons especially sales persons, work on forms of commission. – The percentage employees are paid is called commission rate • Commission = Total Sales X Rate

Example: Kim sells houses for real estate; she earns 3. 5% commission of the selling price. If she sells a house for $85, 000 what is her commission? ? • Commission = Commission Rate X Selling Price • Commission = = 3. 5% 0. 035 • Commission = $2, 975 X X $85, 000

Class Exercise Amount of Sales Commission Rate $956 8% $1, 250 11% $2, 680 9. 5% Decimal Amount of Commission

Salary plus commission • Some sales persons earn both commission and salary or hourly wage

Example: Pete is paid $248 per week and 10. 5% on all sales over $2500. One week he sold a total of $3760. How much did he earn in a salary plus commission that week? • Sales for which commission is paid – $3760 -$2500 = $1260 • Commission – 0. 105 X $1260 = $132. 352 • Salary plus commission – $248 + $132. 35 = $380. 35

1 -5 Daily Logs & Time Cards • Employees who work on an hourly basis must keep track of the hours they work • A daily log is a record of the time the worker begins and ends work • A weekly timecard is made up of the daily logs for each working day of the week – As technology advances time cards are used less and less, but it is still important for workers to monitor the amount of hours work to ensure proper payment

To interpret time cards you need to be able to add fractions • 2¾+7¼= • 3 ½ + 2 2/3 = • 5¾+3¾=

Example 1: Amy logged the following hours on Oct 30 th Name Amy Date In Out 10/30 8: 30 12: 15 12: 50 5: 05 Hours

How many hours did she work? • Find the hours before lunch – 8: 30 >>11: 30 = – 11: 30>>12: 15 = – 3 h + ¾ h = 3 ¾ h 3 h ¾h • Find the hours after lunch – 12: 50 >>4: 50 = 4 h – 4: 50 >> 5: 05 = ½h – 4 h+½h = 4½h • Find the total hours for the day – 3½h+4½h=8 h

Example 2: Rosa kept the time card shown below. She earns $8. 50/hr and time an a half over 40 hrs. Find her weekly pay? Name Rosa Date In Out Total 1/29 8: 30 12: 45 1: 45 5: 30 8 h 1/30 8: 30 12: 15 1: 00 5: 30 8¼h 1/31 8: 25 11: 55 12: 30 4: 45 7¾h 2/1 8: 15 12: 15 1: 00 6: 15 9¼h 2/2 8: 30 12: 20 12: 50 5: 30 8½h

Steps to Example 2: • Find the total hours – 8 + 8 ½ + 7 ¾ + 9 ¼ + 8 ½ = 41 ¾ • Find the regular pay – $8. 50 X 40 = $340 • Find the overtime pay – $8. 50 X 1. 5 = $12. 75 – 12. 75 X 1. 75 = $22. 31 • Find the total pay – $340 + $22. 31 = $362. 31

Chapter Review • Text page 64 – #’s 1 -38 even – Review answers – Are there any questions? • Test – Be CONFIDENT…