Overtime
This is the standard number of hours an employee must work in a workweek before overtime pay applies under the Fair Labor Standards Act (FLSA).
40
This replaces a percentage of a worker's pre-retirement income based on your lifetime earnings. The amount of your average earnings that this benefits replaces depends on your earnings and when you choose to start benefits.
Social security
A musician earns a percentage of album sales for their creative work. This type of earnings is called by this term.
Royalties
What are two advantages of commission-based pay for employees?
Encourages high performance
potential for unlimited earnings
True or false: Washington state does not have a personal income tax
True
Overtime pay is typically calculated at this rate compared to an employee's regular pay.
one and a half (1.5) times the regular rate
Federal health insurance for anyone age 65 and older, and some people under 65 with certain disabilities or conditions.
Medicare
If a factory worker earns $0.75 per widget and produces 200 widgets in a day, this is the total daily income they will earn.
$150
If a salesperson earns a 5% commission on $2,000 worth of sales, this is the amount they will take home as commission.
$100
Also known as take-home pay or net income, is the amount of money an employee receives after taxes and deductions are subtracted from their pay
Net pay
Tommy worked 49 hours last week. How many were overtime?
The earnings an employee receives for selling products or services. Often a percentage of the total sales revenue calculated by multiplying the total sales revenue by a set rate.
Commission
A disadvantage of piecework is that workers may prioritize this over quality.
Quantity or speed
The type of commission structure where employees earn a fixed percentage on every sale, regardless of performance thresholds.
Straight commission
The total amount of money an employee earns before any deductions are taken out, such as taxes, benefits, or retirement contributions.
Gross pay
CJ makes $25 per hour. He gets paid double time for overtime. How much does he make per hour on overtime?
$50
Also known as task-based or output-based pay where employees are paid a fixed rate for each unit they produce or service they perform.
Piecework
If an author receives 10% of the retail price for each book sold, this is the royalty amount on a $20 book.
$2
This is a common way to calculating commission: multiplying the commission rate by this.
Total sales
Tax rate for medicare
1.45%
If an employee earns $20 per hour and works 45 hours in a week, this is their total pay for the week, including overtime.
$950
(40 hours x $20 = $800; 5 hours x $30 = $150; Total = $950.)
Payment made to an owner of an asset in exchange for the right to use that asset. These are often a percentage of the revenue generated from the asset, but can also be a fixed price per unit sold (Mr. Wonderful).
Royalties
A pieceworker in a garment factory earns $10 per shirt sewn. If they complete 15 shirts, but 3 fail quality control and aren’t paid for, this is their total pay.
$120
A company implements a tiered commission structure: 12% on sales up to $1,000, and 15% on sales above $1,000. Calculate the total commission for a salesperson who generates $3,000 in sales in a month.
$1,000*.12=$120
$2,000*.15=$300
Total commission is $420
The tax rate for social security
6.2%