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Pay Periods and Types of Pay

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					PAYCHECKS, PAY PERIODS,
TYPES OF PAY
Pay Periods
   In order to understand your paycheck,
    you need to understand pay periods.
   How often you get paid.
PAYCHECKS
   Gross Pay vs. Net Pay
   Gross is total pay before deductions.
   Net Pay is TAKE HOME Pay, or Pay after
    deductions
             NET PAY
DEDUCTIONS
DEDUCTIONS
What are examples of some
deductions?
Social Security, Federal, State and Local
 Income taxes.
Medicare, Health Insurance, retirement
 plans, pre-tax savings plans (401k, etc)
Pay Periods
    and
Types of Pay
Weekly
   Duh
   How many weeks are in a year?
   52 weeks in a year
   52x a year
Monthly
   How many times per year would you
    get paid if you got paid monthly?
   12x a year.
   Not so common.
Most employers…
   Use either every two weeks or twice a
    month?
   Same thing right…?
       NOT REALLY.
   Every Two Weeks (Every other Friday)
   Twice a Month (15th and 30th or the
    month)
Biweekly
   Every two weeks
   AKA Every other Friday
   How many times are you paid a year if
    you are paid Biweekly?
   52 weeks a year, 26 paychecks.
Semimonthly
   AKA Twice a month
   AKA “The 15th and 30th”
   How many times a year are you paid if
    you are paid ‘semi-monthly’
   12 months a year,
    2x a month = 24x a year.
What’s a better deal?
   2,000 a paycheck, paid semimonthly.
       24 x 2000 = $48,000
   2,000 a paycheck, paid biweekly
       26 x 2000 = $52,000 a year.
   $1500 a paycheck, paid semimonthly.
       1500 x 24 = 36,000 a year
   $1400 a paycheck, paid biweekly.
       1400 x 26 = 36,400 a year
TYPES OF PAY?
   How do people get paid?
Hourly
   Hourly wage.
   Some jobs can be ‘under the table’
       Usually not long term
       Not really legal, tax wise
   Overtime can be given for hours worked over
    40.
   Time-and-a-half
       Extra Pay for working more than X hours in a
        week or working on a holiday.
       Not standard, each company has diff. policies.
Salary
   A fixed amount based on a years work.
   May have set hours to be there, but
    salaried employees often work extra
    hours beyond scheduled for no extra
    pay.
Commission
   A percentage of the sales come back to
    you.
       Salesman (commision)
       Waiters/Servers (tips)
By the Job
   AKA Piecework, AKA Contract Work
   Get paid a certain amount per job
   Could be a bid or estimate
   Most common with business owners
SALARY
   PROS      CONS
HOURLY
   PROS      CONS
COMMISSION
   PROS        CONS
CONTRACT / BY THE JOB
   PROS        CONS

				
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posted:8/24/2012
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