Paula may work 160 hours in one month and 170 hours

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Unformatted text preview: ay work 160 hours in one month and 170 hours in the next, but her gross earnings for each of the two months are the same—$2,000. AS YOU READ It’s Not What It Seems Gross In accounting gross does not have a negative meaning. The term gross refers to an amount before anything is deducted or subtracted. Section 1 Calculating Gross Earnings 308-337_CH12_868829.indd 311 311 9/15/05 11:42:21 AM Hourly Wage Another common way of paying employees is the hourly wage. A wage is an amount of money paid to an employee at a specified rate per hour worked. The number of hours worked multiplied by the hourly wage equals the gross earnings for the pay period. For example, Emily Kardos, a delivery driver for Roadrunner, is paid $6.75 per hour. During the last weekly pay period, she worked 36 hours. Emily’s gross earnings are $243.00 (36 hours $6.75). Many employees are required to use time cards to accurately record their work hours during each pay period. A time card is a record of the times an employee arrives at work and leaves each day. The times may be recorded manually or by a time clock. The time card also shows the total hours worked each day. Figure 12–2 shows a manual time card. Many businesses divide an hour into four 15-minute quarters to measure employee work time. These quarter hours are determined as follows: 11 NAME Emily Kardos 201-XX-XXXX SOC. SEC. NO. 6/30/20-WEEK ENDING NO. DAY IN OUT IN OUT IN OUT TOTAL M 7:58 12:25 1:32 4:18 7 1/4 T 8:00 12:00 12:45 4:00 7 1/4 W 7:56 12:01 1:10 4:15 7 Th 8:01 11:55 1:02 4:16 7 1/4 F 7:45 12:02 1:05 3:58 7 1/4 S S TOTAL HOURS HOURS REGULAR OVERTIME 36 RATE AMOUNT $6.75 $243.00 0 TOTAL EARNINGS SIGNATURE Emily Kardos Figure 12–2 An Employee Time Card 312 36 DATE $243.00 6/30/20-- Quarter Hour On the hour 15 minutes after the hour 30 minutes after the hour 45 minutes after the hour Example 2:00 p.m. 2:15 p.m. 2:30 p.m. 2:45 p.m. Employees seldom arrive and leave exactly on the quarter hour. As a result, some companies round arrival...
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This note was uploaded on 01/16/2014 for the course BUSINESS Accounting taught by Professor Dr.stevenhall during the Fall '13 term at Del Mar College.

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