Lesson 1 Definitions

Total pay (or Gross Pay) – The salary or wages received before taxes and other deductions are taken out.

Hourly pay – The rate of pay (dollar amount) you receive for each hour of work that you perform.

Straight-time hours – The total number of hours worked for a pay period that does not exceed 40 hours per week.

Straight-time pay – The total amount of money earned for a pay period at the regular hourly rate.

Regular pay – The total amount of money earned for a pay period at the regular hourly rate.

Regular hours – The total number of hours worked for a pay period that does not exceed 40 hours per week.

Hourly rate – The rate of pay (dollar amount) you receive for each hour of work that you perform. The same as "hourly pay."

Overtime rate – Extra pay for hours worked beyond regular hours.

Overtime pay – Extra pay for hours worked beyond regular hours.

Time and a half – An overtime pay rate of 1 1/2 times the regular hourly rate.

Pay period – The length of time that payroll is computed.

Piecework – A specified amount of money paid to an employee for each item of work completed.

Quota – A specified amount of produced items required of a worker.

Incentive – A specified amount of money per item produced beyond a quota.

Salary – A fixed amount of money earned on a regular basis; received weekly, biweekly, semimonthly, or monthly.

Commission – An amount of money paid to an employee for selling a product or service.

Commission rate – A specified amount of money paid to an employee for each sale made or a percent of the total value of sales made.

Graduated commission – Pay in which the commission rate is different for different levels of sales.