Pay Structures
How Much Per Year?
Comparing Benefits
Self Employment
Key Terms
Miscellaneous Math
100
This is a dollar amount that is earned for every hour worked.
Hourly Wage
100
Steve's annual salary is $55,000.
$55,000
100
Total Compensation can be calculated by adding all the benefits your job offers to this.
Base Pay
100
This is the easiest business structure for self employment, since it requires no legal registration or paper work.
Sole Proprietorship
100
This is what we call the you get before any deductions are taken out of your paycheck.
Gross Pay
100
You earn $17 an hour, and you get paid time and a half for any hours worked over 40 hours. Rounded to the nearest dollar, this is how much money you made for working 57 hours.
$1,114
200
This is a fixed amount of money earned on an annual basis
Salary
200
Bob gets paid $36/hr for full time hours. He works every week, except for the 2 weeks paid leave he gets a year.
$74,880
200
Premium
200
This business structure is more popular than others due to the personal protection it offers to the owners' assets.
Limited Liability Company
200
This is the sum of your base pay and any other benefits your employer offers you.
Total Compensation
200
Rounded to the nearest dollar, this is the amount of money you make per hour if you have an annual salary of $57,000, assuming you work 40 hours per week.
$27
300
This method of compensation is based on the sales performance of the employee.
Commission
300
Jackxson gets 18% of the revenue he generates for his company. This year he generated $313,888.89 worth of sales.
$56,500
300
This would be your Annual PTO Value if you get paid $25/hr and receive 8 hours per month of PTO.
$2,400
300
As of 2016 (and more recently as of 2023) this percentage of the US Workforce is self employed.
10.1%
300
Examples of this include Health Insurance, Paid Time Off, or Retirement Funds.
Benefits
300
Rounded to the nearest dollar, this is your monthly pay if you get paid $21.50/hr and work 40 hours per week.
$3,727
400
Intellectual Property
400
Juwan gets paid $2,450 biweekly.
$63,700
400
When calculating total compensation, all monetary amounts should be converted to this unit of time.
Years
400
This business structure is very effective at limiting liability, they they are very expensive to start and maintain.
Corporations
400
If you are looking to pay somebody to help find you a job, you should try going to one of these establishments.
Job Agency/Staffing Agency
400
Assuming Spotify pays $0.005 per stream, and Sabrina Carpenter gets a 75% royalty for each of her songs, this is how much she made off of her 1.8 billion streams of her hit song "Espresso" on Spotify.
$6,750,000
500
Dave manufactures car parts, and is paid $30 for each part that passes inspection. He is paid twice a month according to this pay structure.
Piecewise Pay
500
This is how many more paychecks a person who gets paid weekly gets per year than a person who gets paid semi-monthly.
28
500
The Total Compensation for the following Job Offer:
Base Pay: $75,000
Health Insurance: Employee pays 25% $300 monthly premium
Retirement: Employer matches 4% of salary
2 Weeks Paid Vacation
$80,700
500
People will often enter into partnerships so they have more access to funds to start or expand the business. These funds are often referred to as this.
Capital
500
This is one of the ways people are dumb with money, and it includes assigning a higher value to something you own just because you own it.
Endowment Effect
500
Your job has a starting salary of $76,000, and you get a raise of 3% for every year you stay with the company. Here's what your salary would be in the 10th year.
$99,163