Wage Structures
What are the two types of wages?
Booth renting and regular employee
What is minimum wage?
$15 an hour
How many years do you have to build a clientele until you can have a commission payments structure?
At least 2 years
Exactly how it sounds. You get both an hourly wage plus commission.
What is the most common percent you are supposed to tip someone?
20%
What is Hybrid Pay?
Earning both an hourly and commission.
How many hours do you have to work minimum to then qualify for overtime pay?
40 hours
What is commission?
A percentage of the revenue generated from services performed by a professional.
What is another name for this arrangement?
A guarantee
What do you tip someone based off of?
Their service
How is pay structured in a Booth rental situation?
Fixed amount of pay for rent, the rest is your own profit to use on whatever you need.
What is a salary?
Having a set amount of money you get paid an hour
Commissions are paid based on a percentage of your total service dollars and can range anywhere from ____ to ____ percent.
25%-75%
If you receive a straight hourly wage but can receive as much as 15% commission on all the retail products you sell, what is that varient called?
Salary plus bonus
What do you do with your tips after you receive them?
Always track and report them on your income tax return.
How is pay structured for a typical employee?
(3 possible answers, Guess all three)
1) Hourly
2) Commission
3) Both
What are the three downsides to having an hourly wage?
1) Taxes get taken out
2) If you're a manager, you do not get overtime
3)The less hours you work the less money you receive.
True or False
Many states allow straight commission payments.
AND TELL WHY
False
Many states do not allow straight commission payments unless they average out to be at least minimum wage.
What is this kind of structure often used to accomplish?
To motivate employees to perform more services
What benefits do you get for reporting your tips?
Will be beneficial if you want to take out some sort of loan such as a mortgage. It will make your income appear as strong as it can.
What is the difference between an employee and an independent contractor?
The amount of control and the relationship a worker has with the company.
If you worked 48 hours this week, you get paid minimum wage and time and a half for overtime, how much money did you earn?
$696
If your total is $1,000 for the week, and you get 50% commission, how much money do you take home?
$500
You earn an hourly wage of $300, you perform $600 worth of services, you get 20% commission as well, what is your total for the week?
$420
It is important to be aware of what your _____ expenses are and to have a personal financial budget in place.
Monthly