Convenience Benefits

```What is the major reason people
work?
skills? To meet new and exciting
people?
NO – to make money!!!
Focus: How to calculate different types
of pay?
Chapter 8 section 2
Compelling Why!
If you are to receive a salary, do you
know how to calculate your gross pay
for each pay period?
What kind of information do you need?
Hourly Workers?


Are you entitled to overtime?
How do you calculate OT?
WAGES
First 40 hours is at regular pay
rate.
Anything over 40 hours is at 1.5
overtime.
Hourly wage example
Jim worked 45 hours last week
He makes \$8.90 an hour
What is his gross pay?
Regular pay 40*8.9 = 356.00
Overtime pay 5*(1.5*8.9) = 66.75
Total gross pay
356.00 + 66.75 = \$422.75
Now – you try…
Hourly wage example
Judy worked 52 hours last week
He makes \$11.90 an hour
What is his gross pay?
Regular pay 40*11.90 = 440.00
Overtime pay 11*(1.5*11.90)
(1.5*11.90) = 17.85
17.85*12 = 214.20
Total gross pay
440.00 + 214.20 = \$654.20
SALARY
Exempt employees - No matter how many
hours you work, you get paid the same
amount each pay period.
52 weeks in a year
If paid every two weeks
If paid twice a month
If paid once a month
26 pay periods
24 pay periods
12 pay periods
Salary
Sean’s salary is \$42,500 a year
What is Sean’s gross pay if he gets paid…
every two
weeks
bi- monthly
Once a
month
\$42,500/26
\$42,500/24
\$42,500/12
\$1,634.62
\$1,770.83
\$3,541.67
Commission
Incentive to works because pay
is directly related to the
amount of work a person does
Ie. Sales person and Production
workers
Commission Car Sales Person earns
9% commission for each car sold
Sold 2 cars
Car 1 - \$21,790
Car 2 - \$25,650
How much does the
Salesperson earn?
\$21,790
+ 25,650
47,440
x _ .09
\$4,269.60
Base + incentive
Jill works at Best Buy and has a bi-weekly
salary of \$1,000.
She earns 3% of the merchandise she
sells.
She sold \$6,000 in merchandise this pay
period.
What is Jill’s gross pay?
\$1,000 + (.03 x 6000)
\$1,000 + 180 = \$1,180.00
Incentive Plans
Profit sharing

Workers receive a share of the company’s
profits.
Performance Bonuses

Companies pay bonuses to workers who
increase the quantity or quality of their
work.
Bell work
Besides pay – what other
expectations do you have
you get a full-time job.
Fringe benefits
wages and salary
Can cost a company 20% to 40% of a
employees salary to provide benefits
ie an employee is paid \$40,000
This employee’s fringe benefits could
cost between \$8,000 and \$16,000 a
year
Common fringe benefits
Life, health, dental, disability insurance

Health insurance most costly and sought after benefit
Profit-sharing &amp; Pension plans

Builds retirement funds

Employers may also contribute
Paid Vacations
Personal Illness, and bereavement days
Absences for the birth of a child
Graphic Organizer
Employee Compensation
INCENTIVE
PLANS
•Bonuses
•Stock options
•Profit sharing
BENEFITS
•Health insurance •Retirement plan
•Paid vacations
•Convenience benefits
PAYMENT
•Salary
• Overtime
•Hourly wages • Commission
Chapter 8 • Beginning a New Job
Succeeding in the World of Work
THOSE REQUIRED BY LAW

Unemployment compensation

Worker’s compensation

Social Security
Convenience
Benefits
Services that make
worker’s lives easier
flexible work hours
fitness center
On-site childcare
What can you think of?
Cafeteria Plan
Not a benefit but a policy
that lets employees
chose the benefits they
want.
ie an employee may
choose disability
insurance over
vacation time.
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