Calculating Gross Pay and Net Pay

Front

What is the definition of disposable income according to the text?

Back

The amount of money remaining after taxes have been deducted that a person can save or spend as he or she wishes.

Front

What does the Fair Labor Standards Act establish about overtime pay?

Back

Overtime is time worked beyond an employee's regular hours and is paid at one and one-half times the regular rate of pay.

Front

How many pay periods per year does a bi-weekly pay schedule have?

Back

26

Front

What is a salary?

Back

A fixed amount of money paid to an employee to do a job regardless of hours worked.

Front

What is gross pay?

Back

The amount of money earned before any deductions are subtracted.

Front

Chris worked 51 hours in total last week. How many overtime hours did he work?

Back

11 hours

Front

Explain the difference between an hourly wage and a salary.

Back

An hourly wage is paid based on the number of hours worked, while a salary is a fixed amount paid regardless of hours worked.

Front

What is the difference between a pay period and a payday?

Back

A pay period is the time frame in which work is performed and a payday is when the worker receives payment for that period.

Front

Which pay frequency corresponds to being paid every 2-weeks with 26 pay periods per year?

Back

Bi-Weekly

Front

Which pay frequency corresponds to being paid once per month with 12 pay periods per year?

Back

Monthly