PAYCHECKS, PAY PERIODS,
TYPES OF PAY
In order to understand your paycheck,
you need to understand pay periods.
How often you get paid.
Gross Pay vs. Net Pay
Gross is total pay before deductions.
Net Pay is TAKE HOME Pay, or Pay after
What are examples of some
Social Security, Federal, State and Local
Medicare, Health Insurance, retirement
plans, pre-tax savings plans (401k, etc)
Types of Pay
How many weeks are in a year?
52 weeks in a year
52x a year
How many times per year would you
get paid if you got paid monthly?
12x a year.
Not so common.
Use either every two weeks or twice a
Same thing right…?
Every Two Weeks (Every other Friday)
Twice a Month (15th and 30th or the
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.
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?
Some jobs can be ‘under the table’
Usually not long term
Not really legal, tax wise
Overtime can be given for hours worked over
Extra Pay for working more than X hours in a
week or working on a holiday.
Not standard, each company has diff. policies.
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
A percentage of the sales come back to
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
CONTRACT / BY THE JOB