Transcript Pay Periods and Types of Pay

PAYCHECKS, PAY PERIODS,
TYPES OF PAY
Pay Periods
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In order to understand your paycheck,
you need to understand pay periods.
How often you get paid.
PAYCHECKS
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Gross Pay vs. Net Pay
Gross is total pay before deductions.
Net Pay is TAKE HOME Pay, or Pay after
deductions
DEDUCTIONS
DEDUCTIONS
NET PAY
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
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Duh
How many weeks are in a year?
52 weeks in a year
52x a year
Monthly
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How many times per year would you
get paid if you got paid monthly?
12x a year.
Not so common.
Most employers…
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Use either every two weeks or twice a
month?
Same thing right…?
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NOT REALLY.
Every Two Weeks (Every other Friday)
Twice a Month (15th and 30th or the
month)
Biweekly
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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
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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?
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2,000 a paycheck, paid semimonthly.
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2,000 a paycheck, paid biweekly
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26 x 2000 = $52,000 a year.
$1500 a paycheck, paid semimonthly.
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24 x 2000 = $48,000
1500 x 24 = 36,000 a year
$1400 a paycheck, paid biweekly.
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1400 x 26 = 36,400 a year
TYPES OF PAY?
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How do people get paid?
Hourly
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Hourly wage.
Some jobs can be ‘under the table’
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Usually not long term
Not really legal, tax wise
Overtime can be given for hours worked over
40.
Time-and-a-half
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Extra Pay for working more than X hours in a
week or working on a holiday.
Not standard, each company has diff. policies.
Salary
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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
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A percentage of the sales come back to
you.
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Salesman (commision)
Waiters/Servers (tips)
By the Job
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AKA Piecework, AKA Contract Work
Get paid a certain amount per job
Could be a bid or estimate
Most common with business owners
SALARY
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PROS
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CONS
HOURLY
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PROS
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CONS
COMMISSION
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PROS
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CONS
CONTRACT / BY THE JOB
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PROS
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CONS