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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
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
SOC. SEC. NO.
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
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
2:45 p.m. Employees seldom arrive and leave exactly on the quarter
hour. As a result, some companies round arrival...
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