Employment Basics Review

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What is Gross Pay?

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Gross Pay is the total amount of money earned by an employee before any deductions such as taxes, insurance, or retirement contributions.

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What is Net Pay?

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Net Pay is the amount of money an employee takes home after all deductions have been made from the Gross Pay.

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How do you calculate hourly pay from a monthly salary?

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To calculate hourly pay from a monthly salary, divide the monthly salary by the number of hours worked in a month (typically 160 hours for full-time work).

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What is the formula for calculating overtime pay?

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Overtime pay is calculated as: Overtime Pay = (Hourly Rate x 1.5) x Number of Overtime Hours.

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If an employee earns $12 per hour and works 45 hours in a week, how much do they earn in total?

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Total Pay = (40 hours x $12) + (5 hours x $12 x 1.5) = $480 + $90 = $570.

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What is the difference between bi-weekly and monthly pay?

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Bi-weekly pay is received every two weeks, resulting in 26 paychecks a year, while monthly pay is received once a month, resulting in 12 paychecks a year.

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What does FICA stand for?

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FICA stands for the Federal Insurance Contributions Act, which is a U.S. law that mandates a payroll tax to fund Social Security and Medicare.

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What is the significance of time-and-a-half pay?

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Time-and-a-half pay is a wage rate that is 1.5 times the regular hourly rate, typically paid for overtime work.

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How do you determine the total annual salary from a monthly salary?

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To determine the total annual salary from a monthly salary, multiply the monthly salary by 12.

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What is a pay rate?

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A pay rate is the amount of money an employee earns per hour, day, or project.