Calculating Wages

Front

What is gross pay?

Back

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

Front

How do you calculate gross pay for hourly workers?

Back

Gross pay for hourly workers is calculated by multiplying the number of hours worked by the hourly wage.

Front

What is overtime pay?

Back

Overtime pay is the additional compensation paid to employees who work more than a standard number of hours, typically over 40 hours in a week.

Front

How is overtime pay calculated?

Back

Overtime pay is usually calculated at a rate of 1.5 times the regular hourly wage for hours worked beyond the standard 40 hours.

Front

If an employee works 42 hours at a rate of $10 per hour, what is their gross pay?

Back

$420 (42 hours x $10/hour).

Front

What is the formula to calculate gross pay including overtime?

Back

Gross Pay = (Regular Hours x Regular Rate) + (Overtime Hours x Overtime Rate).

Front

What is the regular pay rate?

Back

The regular pay rate is the standard hourly wage that an employee earns for their normal working hours.

Front

If a worker earns $15 per hour and works 45 hours in a week, what is their overtime pay?

Back

Overtime pay = 5 hours x ($15 x 1.5) = $112.50.

Front

What is the difference between gross pay and net pay?

Back

Gross pay is the total earnings before deductions, while net pay is the amount received after all deductions.

Front

How do you find the total earnings for a week if an employee works 37 hours at $12 per hour?

Back

Total earnings = 37 hours x $12/hour = $444.