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Different Types of Wages

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Ben Rogers

on 10 May 2012

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Transcript of Different Types of Wages

Different Types of Wages What is a wage? How much an employee earns ($) 4 main types: 1. Salary Most common form - An employee receives a set amount of money regardless of the hours worked. - Usually set for the entire year

$50,000/year 2. Hourly - An employee is paid a certain amount of money for every hour of work. By law, if an employee works more than 40 hours per week, they are paid OVERTIME. Usually an employee is paid "time and 1/2" for
overtime hours. John worked 30 hours last week. If he earns $25 per hour, how much
did he earn for the entire week? If John worked 43 hours the next week, how much would he earn for the entire week? 3. Commission An employee is paid a percentage of something they sell. - usually a percentage of the total sale. John sold 1 car for $10,000. If he earns a 10% commission, how much did he earn for selling the car? How employees receive their wages 1. Weekly - Employees get a paycheck every week. 2. Bi-weekly - employees get a paycheck every other week. 3. Monthly - employees get a paycheck once per month. - Commissions are usually paid this way. MOST COMMON 4. Rate pay (piece pay) - an employee is paid based on the number of products they produce. John is paid $1 for every product he produces. If he produced 55 products today, how much did he earn?
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