Section 1.1-1.2 Business Math

Study Guide

employee

those who work for others

employer

the company an employee works for

hourly rate

a certain amount of money paid for each hour worked

gross pay

total amount of money an employee is paid

overtime

time worked beyond the regular working day

time-and-a-half pay

one and a half times the regular time rate

double-time pay

twice the regular-time rate

salary

fixed amount of money paid each pay period

what does the G stand for in “G=HxR”

gross pay

what does the H stand for in “G=HxR”

number of hours worked

what does the R stand for in “G=HxR”

hourly rate

what does the O stand for in “O=FxR”

overtime pay rate

what does the F stand for in “O=FxR”

number of time regular pay is increased (1.5 or 2)

what does the R stand for in “O=FxR”

regular pay rate

how many months in a year?

12

how many weeks in a year?

52

how many bi-weeks in a year?

26

how many bi-months in a year?

24

how many days in a year?

365

How is overtime paid?

by the hour

do you round the overtime rate a person earns?

no

do you round the overtime pay a person recieves?

yes

how do you change a fraction to a decimal?

divide top by bottom

does the pay of a salaried employee change every pay period?

no

If you know the weekly salary of a person and want to wind the monthly or yearly salary, what do you do?

multiply the weekly salary by how many weeks in the month/year

if you know the annual salary of a person and want to find the monthly or weekly salary, what do you do?

divide the annual salary by how many months/weeks in a year

do salary employees earn overtime

no

who typically earns more? a salaried employee or an hourly wage employee

salaried employee

salaries are often stated in ___ amounts.

yearly

what is the difference between bi-weekly and bi-monthly?

bi-weekly is paid every other week and bi-monthly is paid twice a month

what is step 1 in the 4-step process for calculating total gross pay when dealing with regular and overtime hours?

how many hours are you paying? regular and overtime

what is step 2 in the 4-step process for calculating total gross pay when dealing with regular and overtime hours?

how much did they make on regular pay?

what is step 3 in the 4-step process for calculating total gross pay when dealing with regular and overtime hours?

how much did they make on overtime pay?

what is step 4 in the 4-step process for calculating total gross pay when dealing with regular and overtime hours?

adding regular and overtime pay to get the gross pay