CHAPTER 5 Payroll Wages and Salaries How does

CHAPTER 5 Payroll

Wages and Salaries � � � How does Gross Earning differ from Net pay? Gross earning his how much your salary is or how much you get paid per hr * hours worked Net pay is after deductions are taken out (i. e. benefits, taxes, retirement, etc. . )

Time Charts � � You clock in and out Tally up total hours Display overtime hours What is time and a half?

Types of bonus pay � � Overtime hours Shift differential (working odd hours) Comp time (extra free days) Premium payment plans (i. e. holidays)

Piecework Rate � � Gross earnings = pay per item * number of items Can be by units By miles Can be staggered (1 -100 is one rate, 101 -200 is a higher rate, etc…. )

Larger of hourly pay or piecework � � � You might be getting paid $10 per hour and work 8 hours You might get $1 per piece and make 90 during your shift Piecework rate would be higher

Commission Rate � � Some people are paid straight commission Some are paid hourly and commission This can be worked into your salary Commission might be taxed differently

Social Security Tax � � 6. 2% of gross earnings Up to a $102, 000 More you make the more you pay Also known as FICA tax

Medicare Tax � � � Comes from gross pay 1. 45% Gets combined with FICA before then subtracted from Gross Pay

Example � � I have a salary of $98, 000 How much do I pay in Social Security Tax? How much do I pay in Medicare? How much is left?