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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

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

Sheila Williams, a medical secretary, earns $2484 monthly for a 36-hour week. For overtime work, she receives extra pay at the regular hourly rate up to 40 hours and time and one-half beyond 40 hours in any week. During one semimonthly pay period, Williams worked 10 hours overtime. Only 2 hours of this overtime were beyond 40 hours in any one week. Compute the following amounts.

Round all divisions to two decimal places and use the rounded amounts in subsequent computations. Round your final answers to the nearest cent.

a. The regular semimonthly earnings

$

b. The overtime earnings

$

c. The total earnings

$

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a. Divide monthly earnings by 2 to get semimonthly earnings. b. Annualize monthly earnings; divide by 52 weeks; divide by 36 hours to get hourly rate; multiply by 1.5 to get overtime rate; multiply hours over 40 by overtime rate to calculate overtime earnings. c. Total regular and overtime earnings.

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 (round the hourly rate to 2 decimal places before multiplying by

one and one-half to determine the over-time 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.

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