Determining Gross Earnings

Upon completion of this unit, you should be able to:

1. Define and explain the following terms commonly used in connection with employee pay: overtime, regular time, gross earnings, hourly rate, salary, piece rate, commission, salary-commission, bonus, and profit sharing.

2. Compute gross earnings based on regular hours worked and overtime hours worked.

3. Compute earnings on fractions of hours worked.

4. Compute hourly pay for employees paid at weekly, biweekly, semimonthly, and monthly rates.

5. Calculate earnings of employees who are paid on a piece-rate plan.

6. Calculate earnings of employees who receive a night-rate bonus or meal-break payments.

7. Calculate the overtime rate of employees who are paid on the piece-rate plan and who work overtime hours.

8. Calculate gross earnings for employees who are paid a base salary plus a commission.

9. Calculate gross earnings for an employee who is paid a monthly salary but missed several hours of work.