Chapter 6 Pay, Benefits, and Working Conditions

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Chapter 6Pay, Benefits, and Working Conditions

• Understanding Pay, Benefits, and Incentives
• Work Arrangements and Organizations

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Gross Pay, Deductions, and Net Pay

• Gross Pay
• Total Pay Before Deductions
• Equals Hourly Wages Overtime
• Hourly Wage
• Based on 40 Hour Work Week
• Overtime
• gt 40 Hours
• Paid time and a half

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Gross Pay, Deductions, and Net Pay

• Salary
• Regular hours, but no overtime pay
• Deductions
• Amounts subtracted from gross pay
• Social Security
• Federal and State Income Tax
• Medicare
• Savings Contributions
• Health Insurance Costs

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Gross Pay, Deductions, and Net Pay

• Net pay
• Take-home pay
• Equals Gross Pay Deductions
• Estimating Annual Salary
• Hourly Rate 2000
• 8.00/hour 8.00 2000 16,000

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Gross Pay, Deductions, and Net Pay

• Compute Gross Pay
• Regular hours worked 40
• Overtime hours worked 9
• Regular rate of pay 7.50
• Compute Gross Pay
• Regular hours worked 45
• Regular rate of pay 8.15

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Gross Pay, Deductions, and Net Pay

• Compute Gross Pay
• Regular salary 854 per month
• Overtime rate 12.54 per hour
• 12 hours of overtime
• Calculate Monthly Pay
• Annual pay 27,500

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Gross Pay, Deductions, and Net Pay

• Find State and Federal Withholding Taxes
• Single Person
• O Allowances
• Made 256 Last Week

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Gross Pay, Deductions, and Net Pay

• Find State and Federal Withholding Taxes
• Married Person
• 2 Allowances
• Made 846 Last Month

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Gross Pay, Deductions, and Net Pay

• Find State and Federal Withholding Taxes
• Married Person
• 4 Allowances
• Made 1,560 Last Month

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Benefits and Incentives

• Benefits Part of compensation in addition to
  pay
• Profit Sharing
• Employee receives a portion of company profits
• Incentive Pay
• Increases productivity
• Paid vacations
• Typically two weeks per year to start

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Benefits and Incentives

• Paid Holidays
• Include Christmas, Thanksgiving, Labor Day, etc.
• If you work a holiday, double time or more
• Employee Services
• Extras such as discounts on merchandise, free
  parking, day-care, tuition reimbursement, etc.

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Benefits and Incentives

• Sick Pay
• Normally only available to full-time employees
• About 3 10 days per year
• Leaves of Absence
• Without pay, but provides job security
• Family Medical Leave Act (FMLA)
• 50 employees, must give 12 weeks off per year
  for birth of child or illness of self or family
  member
• Guaranteed job when return and healthcare during
  leave

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Benefits and Incentives

• Insurance
• Health
• Usually your company has a set provider such as
  Blue Cross/Blue Shield
• Typically the employer pays for a portion and you
  pay for a portion
• Dental/Vision
• Employer chooses provider, share costs
• Life
• Used in case of your death to supplement lost
  income
• Pay cash to a beneficiary

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Benefits and Incentives

• Bonuses and stock options
• Another form of incentive pay
• Stock options give employees the right to buy a
  certain number of shares at a set price
• Travel Expenses
• May 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 plans
• Pensions
• Provided by employer
• Receive a monthly check upon retirement
• Vested after a set number of years
• Vested means you are entitled to retirement
  benefits
• Employer-sponsored savings plans
• 401(k) and 403(b)
• Employee makes contribution to account, employer
  may match a portion
• Earnings grow tax-free

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Lesson 6.2Work 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 workweeks
• Flextime
• Choose hours 6-3, 7-4, 8-5, 9-6
• Core time (most crucial to be there) 10-3
• May decreases absenteeism
• Compressed workweek
• Instead of 5 days, 8 hours youd work 4 days 10
  hours

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Flexible Work Arrangements

• Job rotation
• Trained in more than one job
• Can switch/rotate between positions
• Greater job satisfaction
• Reduces boredom
• Helps when employees are absent
• Job sharing
• Two people share a full-time job

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Flexible Work Arrangements

• Permanent part-time
• Many are choosing to work 16-25 hours per week
• Saves employers money, while providing
  flexibility to workers
• Balance family/work life
• Telecommuting
• Work from home or on the road
• Stay in contact with manager via phone, e-mail,
  internet

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Labor Unions and Professional Organizations

• Labor Unions
• Group of people in a similar occupation organized
  to protect rights of workers
• Workers pay union dues which support their own
  lawyers, doctors and public officials

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Labor Unions and Professional Organizations

• Functions of unions
• Recruit new members
• Engage in collective bargaining
• Negotiating terms of employment contracts
  wages, benefits, management rights, etc.
• Support political candidates that favor unions
• Provide support services for workers

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Labor Unions and Professional Organizations

• Types of unions
• Craft unions
• Construction, railroad, printing
• Industrial unions
• Steel, automobile, industry
• Public-employee unions
• Police, teachers, firefighters

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Labor Unions and Professional Organizations

• Professional organizations
• Collect dues to provide the following
• Newsletters
• Conferences
• Workshops
• Some professions require members
• American Bar Association - lawyers

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Labor Unions and Professional Organizations

• Grievance
• A formal complaint against management for
  violating a contract
• Seniority
• Ranking of when each employee is hired
• Strike
• Union members refuse to work until an agreement
  is met
• Lobbying
• Supporting a political action or supporting
  legislation to benefit the profession