Weekly 52 paychecks per year Biweekly 26 paychecks per year Semimonthly 24 paychecks per year Monthly 12 paychecks per year

Weekly 24,960 ÷ 52 = $480 Biweekly 24,960 ÷ 26 = $960 Semimonthly 24,960 ÷ 24 = $1,040 Monthly 24,960 ÷ 12 = $2,080

Weekly 18,200 ÷ 52 = _______ Biweekly 18,200 ÷ 26 = _______ Semimonthly 18,200 ÷ 24 = _______ Monthly 18,200 ÷ 12 = _______

Hourly◦ Rate of pay for time worked◦ Minimum wage is “hourly”

Salary◦ Straight amount, regardless of

time worked Commission◦ Based on sales or performance◦ Usually a percentage of sales

Piece Work◦ Based on production◦ Usually a set price per unit

Weekly Biweekly Semimonthly Monthly

52 paychecks year 26 paychecks year 24 paychecks year 12 paychecks year

Establishes minimum wage◦ Federal = $7.25◦ Michigan = $7.40◦ Higher rate applies

Requires overtime premium for any hour worked over 40 in one week◦ Time-and-a-half (1.5) for overtime◦ Double-Time NOT required by law

Some employees are exempt from this law◦ Employees of movie theaters◦ Agricultural workers◦ Workers covered by other laws

(Railroad, Truck Drivers)◦ Salaried workers

Juan Olivar worked 35 hours @ 9.50 per hour◦ 35 x 9.50 = 332.50

Tomoki Romo worked 48 hours @ $12.75 per hour◦ Worked more than 40 hours

(8 hours will be at overtime rate)◦ 40 x 12.75 = 510.00◦ 8 x (12.75 x 1.5) converts to◦ 8 x 19.125 (rounded to 19.13) = 153.04◦ 510.00 regular + 153.04 overtime = 663.04 gross

earnings (or gross pay)

Shawn Williams worked 52 hours @ $7.45 per hour

40 hours X 7.45 = _______________ 12 hours X (7.45 x 1.5*) =

_______________ Regular __________ + Overtime _____________ Gross Earnings = _______________

*Remember to round to 2 decimal places

Employee is told in advance what annual salary is

Based on how often an employee is paid, earnings are calculated as follows …

Nadia Mendez is a school teacher paid $29,800 per year◦ Weekly 29,800 ÷ 52 = 573.08◦ Biweekly 29,800 ÷ 26 = 1,146.15◦ Semimonthly 29,800 ÷ 24 = 1,241.67◦ Monthly 29,800 ÷ 12 = 2,483.33

Carl Freeman is an accountant paid $42,100 per year◦ Weekly 42,100 ÷ 52 = __________◦ Biweekly 42,100 ÷ 26 = __________

Semimonthly 42,100 ÷ 24 = __________ ◦ Monthly 42,100 ÷ 12 = __________

Salary is calculated same as presented before Commission is a percentage of total sales

(usually paid for sales over a set quota, less returns)◦ Quota = Expected amount◦ Returns = Items or amounts customers return,

which reduces the sale

Gary’s straight-time salary is $500 per week. This week his total sales were $2,500 and $75 was returned. His quota is set at $1,700. His commission is based on 6% of sales after returned merchandise, after he met his quota.Actual Sales 2,500 – 75 = 2,425.00Sales Above 2,425 – 1,700 = 725.00Commission 725 x 6% = 43.50Salary + Comm. 500 + 43.50 = 543.50

Gene Jordan receives a salary of $440 per week plus 18% commission on all sales over $2,800. Gene’s total sales last week were $5,500. Returned sales were $1,250.Actual Sales ______ - ______= ______Sales Above ______ – ______ = ______Commission ______ – ______ = ______Salary + Comm. ______ – ______ = ______

Wage based on the number of units or pieces produced

Common in manufacturing facilities Quota is often set Toby Jennings works for a wholesale

medication warehouse. He is compensated on the number of lines he files from an order. He is paid $.04 for each line filled. Toby filled 15,193 line items this pay period.

Earnings15,193 x $.04 = $607.72