Understanding Different Forms of Income

What are some common ways people can be paid for their work?

• Tips and allowances only

• Hourly wages, tips, salaries, and commissions

• Only salaries and hourly wages

• Commissions and bonuses only

If you work 45 hours in a week with an hourly rate of $7.25, how is your overtime pay calculated?

• At one and a half times the hourly rate

• At double the hourly rate

• No extra pay for overtime

• At the same hourly rate

What is a key characteristic of jobs that rely on tip income?

• They receive a fixed salary

• They do not receive any hourly wage

• They have a lower hourly wage supplemented by tips

• They have a high hourly wage

What is a common percentage range for tipping in service jobs?

• 10% to 15%

• 5% to 10%

• 20% to 25%

• 15% to 20%

How is a salaried employee's monthly pay typically calculated?

• By calculating the total sales commission

• By multiplying the weekly hours by the hourly rate

• By adding tips to the base salary

• By dividing the annual salary by 12

What is a benefit of being a salaried employee?

• Getting paid for every hour worked

• Having access to perks like paid leave and health insurance

• Receiving tips from customers

• Earning a commission on sales

What is a potential downside of commission-based income?

• It is fixed and does not change

• It does not include any benefits

• It can fluctuate based on sales performance

• It is always lower than hourly wages

What is the term for the total of your base wage or salary plus any additional income and benefits?

• Net income

• Gross pay

• Base salary

• Total compensation

Which of the following is NOT typically considered a form of additional compensation?

• Paid time off

• Health insurance

• Stock options

• Hourly wage

What should you consider about a job offer besides the base pay?

• The number of coworkers

• The color of the office walls

• The total compensation package

• The location of the job