Learning Target How to calculate Commission Pay periods

Learning Target How to calculate Commission.

Pay periods l Weekly: once a week or 52 times a year. l Biweekly: every two weeks or 26 times a year. l Semimonthly: twice a month or 24 times a year. l Monthly: once a month or 12 times a year.

How Would You Define Benefits? l Rewards l Incentives l Things of value

Wages Versus Salaries l Wages generally refer to hourly compensation paid to operating employees. The basis for wages is time. l Salary is income paid to an individual on the basis of time. l Commission is based on a percentage of the sale

Problems John is selling sets of knives and makes 10% commission on all sales. What would his commission be on the sale of a $3250 set of knives? A salesperson made $890. 50 selling $6850 worth of electronic equipment. Find the commission rate.

Double Time: Hours worked at twice the normal rate of pay (holidays, weekends, etc. ) Shift Differential: An increase on the normal hourly rate for working undesirable shifts (3 rd, swing, etc. ) Split Shift: Increase in pay for working staggered shifts that accomodate for busy times (splitting an 8 hour day into 2, not connected, 4 hour shifts) Comp Time: Instead of extra money for overtime, time off is given

WAGES First 40 hours is at regular pay rate. Anything over 40 hours is deemed ‘Overtime’ Anything over 8 hours a day at some places, too w Overtime Pay? Time and a half, Double, 7 th Day Pay, Sunday Pay

Hourly wage example Jim worked 45 hours last week He makes $8. 90 an hour What is his gross pay? (overtime is time and a half (1. 5)) 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) = 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. 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

Common fringe benefits Life, health, dental, disability insurance Health insurance most costly and sought after benefit Profit-sharing & Pension plans Builds retirement funds Employers may also contribute Paid Vacations Personal Illness Absences for the birth of a child