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
Find the Gross Pay per paycheck based on
piecework wage
Find the Gross Pay per paycheck based on
commission
Business Math, Eighth Edition © 2009 Pearson Education, Inc. Upper Saddle River, NJ
Cleaves/Hobbs 07458 All Rights Reserved
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
Business Math, Eighth Edition © 2009 Pearson Education, Inc. Upper Saddle River, NJ
Cleaves/Hobbs 07458 All Rights Reserved
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
Business Math, Eighth Edition © 2009 Pearson Education, Inc. Upper Saddle River, NJ
Cleaves/Hobbs 07458 All Rights Reserved
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
Business Math, Eighth Edition © 2009 Pearson Education, Inc. Upper Saddle River, NJ
Cleaves/Hobbs 07458 All Rights Reserved
Key Terms
Gross Earnings (Gross Pay)=
the amount earned before
deductions
Net Earnings (Net Pay/Take-
Home Pay)= the amount of your
paycheck
Business Math, Eighth Edition © 2009 Pearson Education, Inc. Upper Saddle River, NJ
Cleaves/Hobbs 07458 All Rights Reserved
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.
Business Math, Eighth Edition © 2009 Pearson Education, Inc. Upper Saddle River, NJ
Cleaves/Hobbs 07458 All Rights Reserved
Key Terms
Regular Pay= earnings based
on an hourly rate of pay
Overtime Pay= earnings based
on overtime rate of pay
Business Math, Eighth Edition © 2009 Pearson Education, Inc. Upper Saddle River, NJ
Cleaves/Hobbs 07458 All Rights Reserved
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.
Business Math, Eighth Edition © 2009 Pearson Education, Inc. Upper Saddle River, NJ
Cleaves/Hobbs 07458 All Rights Reserved
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
Business Math, Eighth Edition © 2009 Pearson Education, Inc. Upper Saddle River, NJ
Cleaves/Hobbs 07458 All Rights Reserved
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
Business Math, Eighth Edition © 2009 Pearson Education, Inc. Upper Saddle River, NJ
Cleaves/Hobbs 07458 All Rights Reserved
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
Business Math, Eighth Edition © 2009 Pearson Education, Inc. Upper Saddle River, NJ
Cleaves/Hobbs 07458 All Rights Reserved
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?
Business Math, Eighth Edition © 2009 Pearson Education, Inc. Upper Saddle River, NJ
Cleaves/Hobbs 07458 All Rights Reserved
Find Jorge’s earnings
100 x 25 =2500
101 to 300 = 200 x 30 = 6000
17 x 35 = 595
Total earnings= Php 9,095
Business Math, Eighth Edition © 2009 Pearson Education, Inc. Upper Saddle River, NJ
Cleaves/Hobbs 07458 All Rights Reserved
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
Business Math, Eighth Edition © 2009 Pearson Education, Inc. Upper Saddle River, NJ
Cleaves/Hobbs 07458 All Rights Reserved
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
Business Math, Eighth Edition © 2009 Pearson Education, Inc. Upper Saddle River, NJ
Cleaves/Hobbs 07458 All Rights Reserved
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
Business Math, Eighth Edition © 2009 Pearson Education, Inc. Upper Saddle River, NJ
Cleaves/Hobbs 07458 All Rights Reserved
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
Business Math, Eighth Edition © 2009 Pearson Education, Inc. Upper Saddle River, NJ
Cleaves/Hobbs 07458 All Rights Reserved
