Calculating Gross Pay and Net Pay

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

• The amount of money earned before any deductions are subtracted.

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

• The total amount of money paid to an employee to do a job.

• The amount of money a worker earns per hour worked.

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

• Overtime is paid at the same rate as regular pay.

• Overtime is not required for hours worked over 40 per workweek.

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

• Overtime is only for salaried workers.

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

• 52

• 26

• 24

• 12

What is a salary?

• The amount of money a worker earns per hour worked.

• The amount of money remaining after taxes have been deducted.

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

• The amount of money earned before any deductions are subtracted.

What is gross pay?

• The amount of money remaining after taxes have been deducted.

• The amount of money a worker earns per hour worked.

• The amount of money earned before any deductions are subtracted.

• The fixed amount of money paid to an employee to do a job.

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

• 9 hours

• 11 hours

• 40 hours

• 51 hours

Explain the difference between an hourly wage and a salary.

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

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

• An hourly wage and a salary are both paid once per month.

• An hourly wage is paid once a week, while a salary is paid twice per month.

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

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

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

• A pay period and a payday both refer to the same day when a worker is paid.

• A pay period is the amount of money received, while a payday is the date it is received.

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

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