Salary Intro

• Hourly Wage

• ​Salary

• Commission​

• Overtime​

• Tips​

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​Can you think of any others?

​When people work, they can earn money in different ways:

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​Hourly Wage

​When you earn a specific amount of money for each hour of work you complete.

For example: You might get paid $16.25 an hour

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If you work 20 hours per week, you can calculate your hourly wage by taking:

$16​.25 x 20

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​Salary

• ​A fixed regular payment, typically paid on a monthly or biweekly basis

• Often expressed as an annual sum

For example:

$48,000 / year

Paid once a month is $4,000 per month (gross pay)

Paid biweekly is $2,000 every two weeks (gross pay)​

​Gross Pay

​The money earned before taxes, withholdings and other deductions are subtracted

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For example: Your bi-weekly or monthly salary OR the calculation of your hourly wage x hours worked​

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​Net Pay

​The money you earn after any taxes, deductions or withholdings are subtracted--the amount you actually bring home

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Gross Pay - Taxes/Deductions = Net Pay​

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