Name: _________________________________
Employee Pay & Benefits Review Worksheet
1. Explain the difference between Gross Pay and Net Pay.
Gross Pay is the amount you make before any deductions. Net Pay is the amount
you take home.
2. What is the difference between Hourly Wages and Salary?
Hourly you get paid for the hours you work, including over time. Salary you get
paid the same amount no matter if you have worked over/under 40 hours.
3. What is the standard Overtime Rate? If someone’s regular rate of pay was $10 per hour,
what would his/her OT rate be?
Standard Overtime rate is 1 ½ of their hourly rate
10 + (10 * ½) = 15 or 10 * 1 ½ = 15
4. Jennifer earns $12 per hour and gets OT at the standard rate for any hours over 40 that she
works in a week. Last week she worked 42 hours. What would her Total Gross Pay be?
Explain your answer.
12 * 40 = 480
18 * 2 = 36
480 + 36 = $516
5. What are the 3 main deductions taken from each employee’s check?
Federal Tax, State Tax, & Social Security Tax
6. Person A claims 2 allowances on his W-4 form, while Person B claims 1 allowance.
Assuming they are both single and make the same amount of money, whose check will be
larger? Why?
Person A, the person with more allowances has less withheld from their paycheck
7. Explain the following benefits:
a. Profit Sharing: Allows employees to receive a portion of the company’s profits at the
end of the year.
b. Paid Vacations/Holidays: Set amount of time off per year
c. Employee Services (give an example, too): Extras given to employees to improve the
company’s morale & working conditions. Examples: Employee discounts, Social
and recreational programs, Free parking, Tuition reimbursement for college
courses, Wellness programs, Counseling for employee problems
d. Sick Pay: Paid time off for illness
e. Leaves of Absence: Temporary leave from a job. It is unpaid but gives you job
security.
f. Insurance: Coverage for health, life, dental, and vision
g. Bonuses: Incentive pay based on quality of work done
h. Stock Options: Employees right to buy a set number of shares in a company
i. Pensions: Plan for retirement – funded by the employer
j. Savings Plans: Employee puts money in for retirement and an employer can
contribute but is not required to.
k. Travel Expenses: Pay for expense occurred while traveling.
Name: _________________________________
Employee Pay & Benefits Review Worksheet
8. Explain how “flextime” works. Be sure to include in your answer, a brief description of
“core time period”. Also include an explanation of what a “compressed workweek” is.
Flex time is when the employee gets to pick their arrival and departure time but you
must work 8 hours in a day. You also have to be present during “core time period”
which is when all employees must be at work.
Compressed work week is when you work longer days for a shorter work. Example
is 4 days a week but for 10 hours a day.
9. How does “job rotation” work?
Employees “rotate” from one task to another to give a more variety in their work. It
also provides employees more training.
10. What is “job sharing”?
2 people share one full-time position
11. Explain:
a. Permanent Part-time: Only work 16-25 hours in a week
b. Telecommuting: Work from home or on the road. Stay in contact with your
boss/company by e-mail, fax, phone, video, etc.
12. Define Collective Bargaining & explain the positive and negative features of collective
bargaining
Is the process of negotiating a work contract for union member; terms of the
contract set working conditions, wages, overtime rates, hours of work, and benefits.
Positive – everyone is on the same playing field and gets the same benefits
Negatives – in negotiations things are given up on both sides and sometimes the
employees loose important things
13. Name and define the 3 types of labor unions
Craft – practice that craft or trade
Industrial – • Skilled/Semi-Skilled/Unskilled employees in a particular industry or
group of industries
Public Employee Union – • Municipal, county, state, or federal employees may
organize; organized like craft except you do not hire outside officers.
Name: _________________________________
Employee Pay & Benefits Review Worksheet
Calculating Net Pay
Directions: For each of the examples below calculate their net pay.
1. Sandra earns $13.50 per hour and works 32 hours
a. What is her Gross Pay:
13.50 *32 = $432
b. Calculate her deductions
Deduction
% Of Gross Pay
Amount Taken Out
Federal Tax
15%
64.80
Social Security
6.2%
26.78
Medicare Tax
1.45%
6.26
Pension
3%
12.96
Total
110.80
c. What is her Net Pay?
432-110.80 = $ 321.20
2. Madison earns $11.50 per hour and works 25 hours
a. What is her Gross Pay:
11.50 * 25 = 287.50
b. Calculate her deductions
Deduction
% Of Gross Pay
Amount Taken Out
Federal Tax
15%
43.13
Social Security
6.2%
17.83
Medicare Tax
1.45%
4.17
Pension
3%
8.63
Total
73.76
c. What is her Net Pay?
287.50 – 73.76 = 213.74
Name: _________________________________
Employee Pay & Benefits Review Worksheet
3. David earns $12.00 per hour and works 36 hours
a. What is his Gross Pay:
12 * 36 =432
b. Calculate his deductions
Deduction
% Of Gross Pay
Amount Taken Out
Federal Tax
15%
64.80
Social Security
6.2%
26.78
Medicare Tax
1.45%
6.26
Pension
3%
12.96
Total
110.80
c. What is his Net Pay?
432 – 110.80 = 321.20
4. Ted earns $11.25 per hour and works 39 hours
a. What is his Gross Pay:
11.25 * 39 = 438.75
b. Calculate his deductions
Deduction
% Of Gross Pay
Amount Taken Out
Federal Tax
15%
65.81
Social Security
6.2%
27.20
Medicare Tax
1.45%
6.36
Pension
3%
13.16
Total
112.53
c. What is his Net Pay?
438.75 – 112.53 = 326.22
