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Understanding Pay - Coggle Diagram
Understanding Pay
Deduction
A deduction is a sum money that is taken from an employees gross pay
Statuary Deductions
Statuary deductions are deductions that must be paid-- income tax
Non Statuary Deductions
Non Statuary deductions are deductions that must be paid
Basic Pay
Basic Pay is the amount of money earned by an employee for the normal working week not including additional pay
Basic Pay= basic rate per hour x normal hours worked
40 hour week. €18 per hour. 40 x 18 = 720
Gross Pay
Gross Pay is the total income a person earns before deductions
Gross Pay -- basic pay + overtime/commission/bonus
Net Pay
Net pay is pay after deductions
Net pay-- gross pay -- total deductions
How Employees Are Paid
Paypath is the payment of an employee's wages directly into their bank account
Piece rate
Piece rate is when an employee is paid based on how many items they produce at work
Piece rate basic pay-- rate per item x number of items produced
Overtime
Overtime is a payment for any extra hours an employee has worked
Overtime pay-- number of overtime hours worked x overtime rate
Commission
Commission is a percentage of sales that is paid to a salesperson
Commission -- toral sales 100 x commission rate
Tax Credits
Tax credits reduce the amount of of tax a person owns to the government
Payslip
A payslip is a record of an employees pay