Payroll Part 1

Business Math
 PAYROLL
Business Math, Eighth Edition © 2009 Pearson Education, Inc. Upper Saddle River, NJ
Cleaves/Hobbs 07458 All Rights Reserved
Gross Pay
 Find the Gross Pay per paycheck based on
salary
 Find the Gross Pay per weekly paycheck
based on hourly wage
piecework wage
commission
Find the Gross Pay
Per Paycheck Based on Salary
Pay periods
 Weekly= 1x a week or 52 times a year
 Biweekly= every 2 weeks or 26 times a year
 Semimonthly= 2 a month or 24 times a year
 Monthly= 1x a month or 12 times a year
Find the gross
earnings per pay period
 Nicole earns Php 360,000 a year. If she is
paid on a weekly basis, what is her gross
pay per week?
 Divide Php 360,000 by 52 pay periods.
 = Php 6,923.08
 What if she is paid on a monthly basis?
 = Php 30,000.00
Try these examples
Find the Gross Earnings for:
 Carolyn, who earns Php150,000 a year and is

paid weekly = Php 2884.62
 Martha, who earns Php 480,000 a year and is
paid weekly =Php 9,230.77
 Bill, who earns Php350,000 a year and is paid
semimonthly = Php 14,583.33
Key Terms
 Gross Earnings (Gross Pay)=

the amount earned before
deductions
 Net Earnings (Net Pay/Take-

Home Pay)= the amount of your
paycheck
Key Terms
 Hourly Rate or Hourly Wage= the amount of

pay per hour worked based on a standard 40
hour work week.
 Overtime Rate= rate of pay for hours worked

that exceed 40 hours per week.
 Time and a half= standard overtime rate that is

1½ (or 1.5) times an hourly rate.
Key Terms
 Regular Pay= earnings based

on an hourly rate of pay
 Overtime Pay= earnings based

on overtime rate of pay
Find the Gross Pay Per Week
Based on Hourly Wages
1. Find the regular pay by multiplying the

number of hours (40 or less) by the hourly
wage.
2. Find the overtime pay by multiplying the
hourly rate by the overtime rate (usually
1.5) and then multiply that rate by the
number of hours that exceed 40.
3. Add the figures from steps 1 and 2.
Here’s an example
 Tessa worked 45 hours last week. If her hourly
rate is Php 100 per hour, find her total gross
earnings:
 Multiply 40 x Php100 = Php4000
 To calculate the overtime amount, multiply her
hourly rate by 1.5: Php 100 x 1.5 = 150
 Multiply the overtime rate x the number of
overtime hours (5): 150 x 5 = Php 750
 Add the regular and overtime pay: Php 4750
Try this example:
 The regular hourly rate in the production
dept. for these employees is Php 60 &
overtime is paid at 1.5
Find the weekly earnings for this
employee:
 Marcus worked 48 hours
 Regular = 40 X 60 = Php 2,400
 Overtime = 8 X 90 = 720
 Gross Pay =Php 3,120
Find the Gross Pay Per Paycheck
Based on Piecework
 Piecework Rate= amount of pay for each

acceptable item produced
 Straight Piecework Rate= piecework rate
where the pay per piece is the same no matter
how many items are produced
 Differential Piece Rate (escalating piece
rate)= piecework rate that increases as more
items are produced
Here’s an example
 Dutchess paints customized face masks. She
is paid on a differential piecework basis.
 Rates are as follows:
 From 1-100 Php 25 per face mask
 From 101-300 Php 30 per face mask
 301 and over Php 35 per face mask
 If she paints 317 face masks, how much will he
earn?
Find Jorge’s earnings
 100 x 25 =2500
 101 to 300 = 200 x 30 = 6000
 17 x 35 = 595
 Total earnings= Php 9,095
Try this example
Jillian gets paid a differential piece rate for each shirt
she sews. Consult the chart below and calculate her
weekly earnings if she sewed 352 shirts last week.
 From 1-100: Php 47 each
 100 x 47 = Php 4700
 From 101-300: Php 60 each
 200 x 60 = Php 12000
 301 and above: Php 70 each
 52 x 70 = Php 3120
 What were her earnings? = Php 20, 340 = answer
Find the Gross Pay Per Paycheck
Based on Commission
 Commission= earnings based on sales

 Straight Commission= entire pay based on sales
 Salary plus commission= a set amount of pay
plus an additional amount based on sales
 Commission Rate= percent of sales that are
eligible for a commission
 Quota= a minimum amount of sales that is required
before a commission is applicable
Here’s an example
Marisa is a restaurant supplies salesperson and
receives 6% of her total sales as commission.
Her sales totaled Php12,000 during a given
week. Find her gross earnings.
 Use the formula: C = CR x TS to find her

earnings
 P = 0.06 x Php12,000 = Php 720
 Marisa’s earnings = Php720
Try this example
 Melanie Brooks works for a cosmetics company
and earns Php3, 000 a week in salary plus 30%
commission on all sales over Php10, 000. If
she had sales of Php18000 last week, how
much were her total earnings?
 Her salary would be Php 3000 plus any

applicable commission
 = 3,000 + (.30 x 8,000) = Php 5,400.00

Payroll Part 1

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Payroll Part 1

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Business Math

Find the Gross Earnings for:

 Carolyn, who earns Php150,000 a year and is

 Gross Earnings (Gross Pay)=

 Net Earnings (Net Pay/Take-

 Hourly Rate or Hourly Wage= the amount of

 Overtime Rate= rate of pay for hours worked

 Time and a half= standard overtime rate that is

 Regular Pay= earnings based

 Overtime Pay= earnings based

1. Find the regular pay by multiplying the

 Piecework Rate= amount of pay for each

 101 to 300 = 200 x 30 = 6000

 Total earnings= Php 9,095

 Commission= earnings based on sales

 Use the formula: C = CR x TS to find her

 Her salary would be Php 3000 plus any

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