Smartacus Study Sheet: Payroll

Business Math Terms

  • Gross Pay, the total sum of all taxable wages to be paid an employee.
  • A Commision is a percentage of the total sales generated by that person.
  • Hourly Rate a fixed amount of money per hour for services rendered.
  • Piece Work Rate a fixed amount of money for each item satisfactorily produced or assembled.

Calculating Commissions

    Commissions = Sales x Rate

Gross Pay Using Hourly Wages

    Gross Pay = (Regular Rate x Regular Hours) + (Overtime Rate x Overtime Hours)

Gross Pay Using Piece Work Rate

    Gross Pay = (Sum of Pieces) x (Rate)