Question
Note: In this chapter and in all succeeding work throughout the course, unless instructed otherwise , calculate hourly rates and overtime rates as follows: 1.
Note: In this chapter and in all succeeding work throughout the course, unless instructed otherwise, calculate hourly rates and overtime rates as follows:
1. | Carry the hourly rate and the overtime rate to 3 decimal places and then round off to 2 decimal places (round the hourly rate to 2 decimal places before multiplying by one and one-half to determine the overtime rate). | |
2. | If the third decimal place is 5 or more, round to the next higher cent. | |
3. | If the third decimal place is less than 5, simply drop the third decimal place. | |
Examples: | Monthly rate $1,827 Weekly rate ($1,827 12)/52 = $421.615 rounded to $421.62 Hourly rate $421.62/40 = $10.540 rounded to $10.54 O.T. rate $10.54 1.5 = $15.81 |
Also, use the minimum hourly wage of $7.25 in solving these problems and all that follow.
Example 2-18
Rob Hau, a nonexempt employee, works a standard 35-hour week and is paid a salary of $1,080.00. Last week, Hau worked 39 hours and was paid his normal salary of $1,080.00 since he has an agreement with his employer that the salary covers all hours worked with the exception of the work hours over 40.
If he had worked 43 hours, his pay would have been:
Regular (up to 40 hours) | = | $1,080.00 |
Overtime pay: | ||
$1,080.00 35 | = | $30.86 per hour |
$30.86 1.5 | = | $46.29 |
$46.29 3 | = | $138.87 |
$1,080.00 + $138.87 | = | $1,218.87 gross pay |
Jody Baush is a salaried employee who normally works a 35-hour week and is paid a weekly salary of $735.00. The agreement that he has with his employer states that his salary is to cover all hours worked up to and including 40. This week, Baush worked 42 hours.
Calculate his gross pay.
Gross pay | $ |
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