Goodwith Cash - BC Bookkeeping Tutorials|dwmbeancounter.com

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Goodwith Cash

Calculating Payroll > Employee Calculations
Goodwith Cash
Our calculation of our cashier's pay is fairly straight forward since she's paid a $6.00 hourly rate except that Ma wants to be able to track how much sick and vacation time costs her each year. Remember Goodwith was out one day due to sickness.

  • Actual Hours Worked - Our first step in calculating her pay for the week is analyzing her hours in order to see if we need to pay her any overtime for more than 40 hours worked during the week. Goodwith Cash only actually worked 35 hours but was also off sick one day ( 8 hours). Since Ma pays for days off sick her total hours paid for the week are 43 hours.

Do we need to pay her 3 hours of overtime ? I tried to trick you - overtime is only based on actual hours worked and does not include holiday or vacation time not actually worked. So, the answer is no we don't have to pay her any overtime. Goodwith Cash's actual hours worked are only 35 hours.
Note:If a holiday was actually worked, the hours would be included in the determination if any overtime hours were worked.

  • Payroll Calculation - All we need to do is multiply her hours times her hourly rate to calculate her earnings (gross) for the week. We do however need to break it out between sick time and regular earnings because although not required, Ma wants to keep track of how much sick days are costing her.

Regular Earnings = Hours Worked x Hourly Rate
Regular Earnings = 35 hours x $8.00
Regular Earnings = $280.00
Sick Time Pay = Sick Time Hours x Hourly Rate
Sick Time Pay = 8 hours x $8.00
Sick Time Pay = $64.00
Total Pay For Week = Regular Earnings + Sick Pay

Total Pay For Week = $280.00 + $64.00

Total Pay For Week  = $344.00

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