Unit 4: Income
Topic: Employee Compensation &
Benefits
ChiArts
Financial Statistics
Employee Compensation & Benefits
• Unit Enduring Understandings
– There is no such thing as a “free lunch.”
– Monetary income is only one way to measure
value.
• Unit Essential Questions
– How do I make more money?
– How do I choose a job?
– Why is my take-home pay less than my quoted
salary?
Pay Periods & Hourly Rate Calculations
Pay Period Vocabulary
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Annual – yearly
Monthly – once a month (12 paychecks/year)
Semimonthly – twice a month (24 paychecks/yr)
Biweekly – every other week (26 paychecks/year)
Weekly – every week
Hourly – every hour
Pay Periods & Hourly Rate Calculations
Example 1 – Janice is paid hourly. She earns $10
per hour. If she works 40 hours per week,
what is her gross weekly pay?
Solution: ($10)(40) = $400 gross weekly pay
Pay Periods & Hourly Rate Calculations
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Hector works in a gas station and earns $8.60
per hour. Last week he worked 29 hours. What
was his gross pay last week?
Pay Periods & Hourly Rate Calculations
Example 2 – Cecil is paid biweekly. Her biweekly
salary is $1,763.28. What is her annual salary?
Solution: There are 26 biweekly paychecks in a
year, so multiply biweekly salary by the
number of paychecks to get: ($1,763.28)(26) =
$45,845.28 annual salary
Pay Periods & Hourly Rate Calculations
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Manny is paid semimonthly. His semimonthly
salary is $1,239. What is his annual salary?
Pay Periods & Hourly Rate Calculations
Example 3 – Sean is paid biweekly. His annual
salary is $42,500. What is his biweekly salary
to the nearest cent?
Solution: There are 26 biweekly paychecks in a
year, so divide annual salary by the number of
paychecks to get: $42,500/26 = $1,634.62
Pay Periods & Hourly Rate Calculations
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John’s annual salary is $24,869. He is paid
weekly. What is his weekly salary?
Pay Periods & Hourly Rate Calculations
Example 4 – Amy regularly works 20 hours per
week at Pook’s Dry Cleaners, Mon-Fri. She
earns $8.10 per hour and receives doubletime pay for working Sundays. What is her
hourly rate on Sundays?
Solution: (2*$8.10) = $16.20
Pay Periods & Hourly Rate Calculations
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Lynn regularly works a 40-hour week and earns
$9 per hour. She receives time-and-a-half pay for
each hour of overtime she works. What is her
hourly overtime rate?
Pay Periods & Hourly Rate Calculations
Example 5 – Amy regularly works 20 hours per
week at Pook’s Dry Cleaners, Mon-Fri. She
earns $8.10 per hour and receives doubletime pay for working Sundays. Next week she
will work her regular 20 weekday hours plus
an additional eight hours on Sunday. What will
her total pay be for the week?
Solution: $8.10(20) + (2*$8.10)(8) = $291.60
Pay Periods & Hourly Rate Calculations
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Lynn regularly works a 40-hour week and earns
$9 per hour. She receives time-and-a-half pay for
each hour of overtime she works. Last week she
worked 43 hours. What was her total paycheck
for the week?
Pay Periods & Hourly Rate Calculations
Example 6 – Allison sells cosmetics part-time.
She receives 11% commission on her first
$900 in sales and 17% commission on any
additional sales. Last month she sold $1,250
worth of cosmetics. How much commission
will she earn for the month?
Solution: (0.11)($900) + (0.17)($1,250 – $900) =
$158.50
Pay Periods & Hourly Rate Calculations
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Maram is a real estate agent. She earns 6.5%
commission on each sale she makes. Last month
she sold one house for $250,000 and another
for $310,000. What did Maram earn in
commissions for the month?