chapter 6 pay, benefits, and working conditions understanding pay, benefits, and incentives work...
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Chapter 6Pay, Benefits, and Working Conditions
Understanding Pay, Benefits, and IncentivesWork Arrangements and Organizations
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Gross Pay, Deductions, and Net Pay
Gross PayTotal Pay Before DeductionsEquals Hourly Wages + Overtime
Hourly WageBased on 40 Hour Work Week
Overtime> 40 HoursPaid “time and a half”
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Gross Pay, Deductions, and Net Pay
SalaryRegular hours, but no overtime pay
DeductionsAmounts subtracted from gross pay
Social Security*Federal* and State Income Tax*Medicare*Savings ContributionsHealth Insurance Costs
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Gross Pay, Deductions, and Net Pay
Net pay“Take-home pay”Equals Gross Pay – Deductions
Estimating Annual SalaryHourly Rate * 2000
$8.00/hour: $8.00 * 2000 = $16,000
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Gross Pay, Deductions, and Net Pay
Compute Gross PayRegular hours worked: 40Overtime hours worked: 9Regular rate of pay: $7.50
Compute Gross PayRegular hours worked: 45Regular rate of pay: $8.15
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Gross Pay, Deductions, and Net Pay
Compute Gross PayRegular salary: $854 per monthOvertime rate: $12.54 per hour
12 hours of overtime
Calculate Monthly PayAnnual pay: $27,500
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Gross Pay, Deductions, and Net Pay
Find State and Federal Withholding Taxes
Single PersonO AllowancesMade $256 Last Week
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Gross Pay, Deductions, and Net Pay
Find State and Federal Withholding Taxes
Married Person2 AllowancesMade $846 Last Month
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Gross Pay, Deductions, and Net Pay
Find State and Federal Withholding Taxes
Married Person4 AllowancesMade $1,560 Last Month
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Benefits and Incentives
Benefits – Part of compensation in addition to pay
Profit SharingEmployee receives a portion of company profits“Incentive Pay” Increases productivity
Paid vacationsTypically two weeks per year to start
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Benefits and Incentives
Paid HolidaysInclude Christmas, Thanksgiving, Labor Day, etc.If you work a holiday, “double time” or more
Employee ServicesExtras such as discounts on merchandise, free parking, day-care, tuition reimbursement, etc.
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Benefits and Incentives
Sick PayNormally only available to full-time employeesAbout 3 – 10 days per year
Leaves of AbsenceWithout pay, but provides job securityFamily Medical Leave Act (FMLA)
50+ employees, must give 12 weeks off per year for birth of child or illness of self or family memberGuaranteed job when return and healthcare during leave
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Benefits and Incentives
InsuranceHealth
Usually your company has a set provider such as Blue Cross/Blue ShieldTypically the employer pays for a portion and you pay for a portion
Dental/VisionEmployer chooses provider, share costs
LifeUsed in case of your death to supplement lost incomePay cash to a “beneficiary”
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Benefits and Incentives
Bonuses and stock optionsAnother form of “incentive pay”Stock options give employees the right to buy a certain number of shares at a set price
Travel ExpensesMay provide company car or reimburse miles driven on personal car“Expense Account”
May be given a set daily allowance or must keep receipts to submit upon return
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Benefits and Incentives
Pension and savings plansPensions
Provided by employerReceive a monthly check upon retirement“Vested” after a set number of years
Vested means you are entitled to retirement benefits
Employer-sponsored savings plans401(k) and 403(b)
Employee makes contribution to account, employer may match a portionEarnings grow tax-free
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GOALSGOALS
Lesson 6.2
Work Arrangements and Organizations
Explain flexible job arrangements, such as flexible schedules, job rotation, job sharing, and permanent part-time employment.
Describe the role of unions and professional organizations in the workplace.
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Flexible Work Arrangements
Altered workweeksFlextime
Choose hours: 6-3, 7-4, 8-5, 9-6Core time (most crucial to be there): 10-3May decreases absenteeism
Compressed workweekInstead of 5 days, 8 hours you’d work 4 days 10 hours
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Flexible Work Arrangements
Job rotationTrained in more than one jobCan switch/rotate between positionsGreater job satisfaction
Reduces boredom
Helps when employees are absent
Job sharingTwo people share a full-time job
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Flexible Work Arrangements
Permanent part-timeMany are choosing to work 16-25 hours per weekSaves employers money, while providing flexibility to workersBalance family/work life
TelecommutingWork from home or on the roadStay in contact with manager via phone, e-mail, internet
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Labor Unions and Professional Organizations
Labor UnionsGroup of people in a similar occupation organized to protect rights of workersWorkers pay union dues which support their own lawyers, doctors and public officials
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Labor Unions and Professional Organizations
Functions of unionsRecruit new membersEngage in collective bargaining
Negotiating terms of employment contracts – wages, benefits, management rights, etc.
Support political candidates that favor unionsProvide support services for workers
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Labor Unions and Professional Organizations
Types of unionsCraft unions
Construction, railroad, printing
Industrial unionsSteel, automobile, industry
Public-employee unionsPolice, teachers, firefighters
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Labor Unions and Professional Organizations
Professional organizationsCollect dues to provide the following
Newsletters ConferencesWorkshops
Some professions require membersAmerican Bar Association - lawyers
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Labor Unions and Professional Organizations
GrievanceA formal complaint against management for violating a contract
SeniorityRanking of when each employee is hired
StrikeUnion members refuse to work until an agreement is met
LobbyingSupporting a political action or supporting legislation to benefit the profession