Chapter 1 Gross Income Section 1 1 Hourly

Chapter 1 Gross Income

Section 1. 1 - Hourly Pay n n 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

Hourly Pay n 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

Hourly Pay n 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

Hourly Pay n 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?

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

Section 1. 2 – Overtime Pay Most people have a regular amount of hours that they work each week. n Whenever you work more than your regular hours, you might receive overtime pay n Overtime Pay is extra pay for hours worked beyond regular hours n

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

Overtime Pay – Time and a Half n 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?

Overtime Pay – Time and a Half n 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 n Total Pay = Straight-time Pay + Overtime Pay

Overtime Pay – Double Time n 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?

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

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. n 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. n

PA Child Labor Laws Minors ages 14 -15 may not be employed before 7 am or after 7 pm, except during a school vacation period a minor can be employed until 9 pm. n Cannot be employed more than 3 hours on a school day, or 18 hours a school week (40 hours with no school) n

PA Child Labor Laws Minors ages 16 -17 may not be employed before 6 am or after 12 midnight during a regular school week. n Cannot be employed more than 8 hours a day or more than 28 hours per week during a regular school week. n No more than 10 hours a day or 48 hours a week during vacation. Hours beyond 44 must be voluntarily agreed by the minor. n

Section 1. 3 – Weekly Time Card n 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 n TOTAL HOURS = Sum of Daily Hours

Weekly Time Card n 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 + 4. 25 hours = 8. 25 hours

Weekly Time Card

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

Practice with Timesheets n TimecardsWeekly time sheet practice 1. xlsx n Quiz tomorrow

Section 1. 4 - Piecework n Some jobs pay on a piecework basis ¨ Piecework is a specified amount of money paid to an employee for each item of work completed

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

Piecework n

Piecework n

Piecework summary n Concept Check #1 -10

Did you know… n 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

Would you rather get paid… n $384. 62 every week n $769. 23 every two weeks n $833. 33 twice a month n $1, 666. 67 one a month n $20, 000 once a year

Section 1. 5 – Salary Instead of paying an hourly wage, many companies’ employees earn a salary n Salary is a fixed amount of money earned on a regular basis and received weekly, biweekly, semi-monthly, or monthly. n

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

Salary n 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)

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

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

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