1.

1 Hourly Pay and Salary

GOALS
 Calculate gross pay for hourly-rate
employees
 Calculate gross pay for salaried
employees

BUSINESS MATH © Thomson/South-Western Lesson 1.1 Slide 1

Gross Pay for
Hourly-Rate Employees
 Those who work for others are called
employees.
 The person or company an employee works
for is called an employer.
 An employee who is paid by the hour works for
an hourly rate, which is a certain amount for
each hour worked.
 The total amount of money that an employee is
paid is called gross pay or gross wages.
BUSINESS MATH © Thomson/South-Western Lesson 1.1 Slide 2
Gross Pay Calculation
 The gross pay earned by employees who are
paid by the hour is found by multiplying the
pay per hour by the hours worked.

Hourly Rate × Number of Hours Worked = Gross Pay

BUSINESS MATH © Thomson/South-Western Lesson 1.1 Slide 3

Gross Pay for Salaried Employees
 Some employees are paid a salary, which is a
fixed amount of money for each time period
worked.
 They are referred to as salaried employees.

BUSINESS MATH © Thomson/South-Western Lesson 1.1 Slide 4

Gross Pay Calculation
for Salaried Employees
 To find their gross pay, multiply their pay for a
time period by the number of time periods
worked.
Pay per Time Period × Number of Time Periods Worked = Gross Pay

BUSINESS MATH © Thomson/South-Western Lesson 1.1 Slide 5