Vocabulary 2b

Regular based salary

hourly wages is based on a standard 40-hour work week with 50 weeks per year (minus two weeks for vacation). (Example: $40,000/year periodic salary divided by 50 weeks equals $800/week.

Weekly salary

A pay period is a recurring length of time over which employee time is recorded and paid. Examples of pay periods are weekly, bi-weekly, semi-monthly, and monthly. A weekly pay period results in 52 paychecks in a year. ... A bi-weekly (every other week) pay period results in 26 paychecks in a year.

Commission based salary

Commission is a sum of money that is paid to an employee upon completion of a task, usually selling a certain amount of goods or services. It can be paid as a percentage of the sale or as a flat dollar amount based on sales volume. Employers often use sales commissions as incentives to increase worker productivity.

Net amount

In a financial context, the term "gross" generally means all of something. For example, on your paycheck, "gross pay" refers to the entire amount of money you get paid, before taxes and other deductions come out.

Once/Month salary

Occurring, appearing, or coming due every month

Annual salary

The average, full-time, salaried employee works 40 hours a week.

Hourly based salary

The average, full-time, salaried employee works 40 hours a week. Based on this, the average salaried person works 2,080 (40 x 52) hours a year. To determine your hourly wage

Overtime

time worked in addition to one's normal working hours.

Net income & Taxes

is calculated by taking revenues and subtracting the costs of doing business such as depreciation, interest, taxes and other expenses.

Gross pay

is the total amount of money you get before taxes or other deductions are subtracted from your salary.

Bi-weekly salary payment

that biweekly happens every two weeks while semimonthly occurs twice per month, such as on the 15th and final day of the month.