Chapter 02 - Pay, Benefits, and Work

Overtime pay is not considered when you calculate your gross pay.

Employers must pay all employees overtime at the rate of 1.5 times the regular rate.

Some deductions are required by law, but others are optional.

Allowances are additions to the amount of income tax that must be withheld from your paycheck.

Employers must contribute matching amounts into each employee’s Medicare and Social Security accounts.

An employee required to work on a paid holiday is usually paid 1.5 times his or her regular hourly rate of pay.

It is customary for employees to receive three to ten days a year as “sick days” without deductions from pay.

When an employee is entitled to his or her full retirement account, the employee is said to be vested in the account.

Employees who telecommute often submit work to their employer using e-mail and cloud computing.

Under flextime, employees do not need to work a set number of hours per day.