1.1
Michael has a part-time job as a telephone sales agent for an airline. He earns $13.25 per hour and worked 22 hours during the week. How much money did Michael earn last week?
$291.50
Eduardo works as an accountant for a consulting firm. He earns an annual salary of $68,090 and an annual bonus based on the firm’s performance. This year, Eduardo will earn a bonus of 3% of his annual salary, which is $2,042.70. What is Eduardo’s annual gross pay?
$68,090.00 + $2,042.70 = $70,132.70
Gross Pay is the amount of money you make BEFORE or AFTER taxes are taken out.
Before
Which of the following are ways you can be paid by your employer? Pick a # below:
Hourly wages
Salary
Commission
All of the above.
#4
Tyler swaps his used car for a new motorcycle. This is an example of _______________.
Bartering
Roberta works in a hospital lab as a medical technician. She works 40 hours per week and earns $700 per week. What is Roberta’s hourly wage?
$17.50 hourly wage
Lee is a paralegal in a local law firm. She earns an annual salary of $35,450. Her law firm offers bonuses based on the firm’s total annual income. This year, Lee’s firm is offering a bonus of 10% of her annual salary. This amounts to $3,545. What will be Lee’s gross pay for this year?
$38,995
Wages that are earned when an employee works more than 40 hours in a week.
Overtime
Income that is not derived from a person’s work.
Unearned Income
Unearned income could include earnings from: Pick a number below:
investments.
salary.
bonuses.
commissions.
#1
Rodrigo works as a billing clerk at the local school district. He earns $13.75 per hour. His earnings for one week are $481.25. How many hours a week does Rodrigo work?
35 hours
Jameson received a job offer with an annual gross pay of $50,000. What does he make monthly?
$4,166.67
Lowest hourly wage employers are legally required to pay employees.
Minimum Wage
Formal agreement between two or more entities, such as people or organizations.
Contract
Person who provides a service to the public or to a company for money.
Independent Contractor
Juanita has a full-time job as a receptionist in a physician’s office. She works 40 hours a week and earns $450 per week. What is Juanita’s regular hourly wage?
$11.25
Taj works as a hydrologist for the federal government. He earns an annual salary of $82,900. In addition, he earns a bonus equal to 6% of his annual salary, which is $4,974. What is Taj’s annual gross pay?
$82,900 + $4,974 = $87,874
The amount of money you take home or that your paycheck is written out for is your NET or GROSS pay
NET pay
Fixed payment for a person’s work, usually paid monthly or twice per month.
Salary
Agreement that has been acknowledged only through spoken words.
Isabella works as a cargo inspector for the local port. She earns $22.50 per hour. Last week she worked 50 hours. For any hours over 40 hours per week she works, Isabella earns overtime pay. That pay is 1.5 times her regular hourly wage. What were Isabella’s total weekly earnings, including overtime pay, for last week?
$1,237.50 (total weekly earnings)
Judith works as a court reporter for a county district court. She earns an annual salary of $57,270. Currently, she is paid semimonthly (twice a month). Her employer is considering paying all employees biweekly.
Calculate the amount of money in Judith’s semimonthly paycheck. Then, calculate the amount of money that would be in Judith’s paycheck if she were paid biweekly.
semimonthly: $57,270/24 = $2,386.25
biweekly: $57,270/26 = $2,202.69
List of employees a company pays.
Payroll
When an employee is paid using the straight commission method, the employee receives... Pick a # below:
only commission.
commission and a base salary.
commission and bonuses.
commission and overtime.
#1
Odie’s cousin sells computer software. He is paid a(n) _____________ that is a percentage of her total sales.
Commission