Money Management Chapter Six Notes Employee Pay and Benefits

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Money ManagementChapter Six NotesEmployee Pay
and Benefits

• _________________________________ is the total
  pay before any deductions are made! The
  calculation for gross pay with less than 40 hours
  worked is
• Gross Pay ______________________________________
  _____
• _________________________________ is defined as
  hours worked beyond the regular hours. A standard
  work week is forty hours.
• According to the Fair Labor Standards Act
  overtime is ______________________ your regular
  rate of pay.
• Overtime Pay _______________________________
  ________
• FOR EXAMPLE, a person may have worked 45 hours.
  Their gross pay would be calculated as follows
• 40 hours X 4.50 per hour ____________
• 5 hours X (4.50 1.5)
  ____________
• Gross pay 180.00 33.75 OR ____________
• Some employees are paid a ______________________
  INSTEAD of being paid by the hour.
• Typically salaried employees either have a
  _____________________________ or an
  ________________________________.
• If they have a monthly salary it is usually
  divided by four and paid each week or by two and
  paid biweekly.
• If they have a yearly salary it is usually
  divided by 26 and paid every other week.
• For example http//hrs.aaps.k12.mi.us/ (page
  101).
• 71,080 / 26 2,733.85 every two weeks
• Most salaried employees __________________________
  _____________________________ for working more
  than 40 hours in a week. Some do though...
  Usually at an agreed upon overtime rate.
• Amounts subtracted from your gross pay are known
  as ___________________________.
• Some deductions are required by law Ex Social
  Security, Federal State Income Tax.
• Others are optional and you may elect one or more
  of them purchase of savings bonds, contributions
  to a retirement plan charitable contributions.

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Money ManagementChapter Six Notes Employee Pay
and Benefits

• ________________________________ are company
  provided supplements to income.
• Some benefits are require by law such as
  unemployment compensation, workers compensation
  and Social Security.
• In order to attract high quality employees, many
  employers offer special additional benefits.
• Typical benefits are _____________________________
  _____________________________ ____________________
  __________________________________________________
  ____.
• ________________________________ a plan that
  allows employees to receive a portion of the
  companys profits. The more money the company
  makes, the more the company has to share with
  its employees. This can lead to a very motivated
  workforce.
• _______________________________________ Most
  businesses provide employees with a set amount of
  paid vacation time (which means that while you
  are on vacation you are paid as usual). The
  average is two to three weeks of paid vacation
  per year.
• Most full-time employees also receive pay for
  official holidays Typically include Labor Day,
  Memorial Day, Thanksgiving, New Years Day.
• _______________________________________ or
  _________________ are the extras that companies
  offer in order to improve employee morale and
  working conditions.
• Many employers offer free or discounted
  merchandise to employees. Other perks may include
  free parking, day-care centers and reimbursement
  for education costs.
• ____________________________________ many
  businesses provide an allowance for sick days. It
  is customary to receive anywhere from 3-10 days.
• ________________________________________ Some
  employers will allow you to leave your job,
  without pay, for certain reasons, with a
  guarantee that you can have your job back at a
  later time. (Reasons include having a kid,
  sickness or death in the family etc...)
• One of the biggest and most important benefits is
  _____________________________!
• ___________________________________ Typically
  the plans require a ____________________________.
  Once that amount is paid the insurance plan will
  pay anywhere from 80-100 of medical expenses.
• ____________________________________ pays a
  cash benefit to a designated person, called a
  beneficiary, if the insured person dies. The
  purpose is to cover lost wages from that
  provider. Typical policies range from 50,000 to
  100,000.
• _____________________________________ Plans
  differ. Typically dental plans cover up to a
  specified amount per year, per family member.
  Some cover braces, others dont. Vision insurance
  also varies, most cover eye exams and lenses once
  every couple of years.
• _______________________ may be handed out based
  on the quality of work done.
• _______________________ give employees, usually
  executives, the right to buy a set number of
  shares of the companys stock at a fixed price.
  The employee gains as the stocks go up.
• ____________________________________ some
  employers provide retirement plans such as a
  pension or help you set up a retirement savings
  plan, like a 401(k). This means that you can
  still receive monthly checks when you are
  retired!
• We will go into MUCH greater detail on retirement
  plans later this semester! Many of these optional
  benefits are of GREAT VALUE to employees.