Workforce Readiness Skills

Paychecks, Wages, and Salary

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Paychecks, Wages, and Salary
Paycheck - A paycheck is a check made out to a worker from the company or person for whom he works.

A paycheck is money and also a record of earnings. A paycheck is usually issued each week, every two weeks, or once a month. It's important to deposit or cash each paycheck soon after receiving it.
A paycheck may be for wages or for salary. Let's look at the difference between wages and salary.
Paychecks, Wages, and Salary
Wage - A wage is pay given for work, usually at a set rate of pay for each hour worked.
For example, James works at the bakery and is paid $7.00 for each hour of work. James' wage is $7.00 per hour. The more hours James works in a week, the more money he will earn. The total amount of money will be on his paycheck.
Anyone on an hourly wage should know the wage being earned and should keep track of the hours worked. Multiplying the hourly wage by the hours worked gives the total earnings. It is important to make sure that each paycheck is the correct amount of money for the hours worked.
Paychecks, Wages, and Salary
Salary - A salary is a fixed amount of money paid for work done during a period of time, such as a year, a month, or a week.
If Jane works full-time for her employer and her salary is $1,600.00 per month, she is paid $1,600.00 each month. Even it Jane works extra hours, she still will be paid $1,600.00 for the month.
When earning a salary, an employee gets paid at regular times.
For example, Jane may get paid one-half of her monthly salary ($800.00) each two-week period. Jane gets paid that amount regardless of how many hours are necessary to complete her work.
Paychecks, Wages, and Salary
Click on the line that correctly completes the sentence.
Your paycheck is __________.
money you receive for an item you sell in the newspaper
a check you receive from your employer for work you have done
a check given to you as a gift
none of the above
Question 1 of 8
Money received in this way would not be referred to as a paycheck. Try again.
The person or company you work for will pay you by check for the work you have done.
Gifts are not salary or wages. Try again.
One of the answers above is correct. Try again.
Remember, the paycheck is work related.
Paychecks, Wages, and Salary
Click on the line that correctly completes the sentence.
Your paycheck is money and __________.
an important record of your earnings
a statement of your health insurance benefits
an estimate of what you will make next year
a contract for employment
Question 2 of 8
Your paycheck contains valuable information about your earnings.
Health insurance statements are separate documents, not part of a paycheck. Try again.
A paycheck does not estimate future earnings. Try again.
Contracts are separate documents, not part of a paycheck. Try again.
Choose the answer that would most likely be on a paycheck.
Paychecks, Wages, and Salary
Click on the line that correctly completes the sentence.
Your employer is __________.
the person or company for whom you work and receive wages or a salary
a person who works with you at the same company
always a very large company
a person who works for you
none of the above
Question 3 of 8
The person or company for whom you work is called your employer.
This person is called a co-worker. Try again.
Your employer could be a small company or just one person. Try again.
This person is called an employee. Try again.
One of the answers above is correct. Try again.
Select the one that would most likely provide your paycheck.
Paychecks, Wages, and Salary
Click on the correct answer.
Which example below describes earning a "wage"?
Tom volunteers at the local hospital.
Tom works for $8.00 per hour.
Tom earns $1,500.00 per month no matter how much he works.
None of the above
Question 4 of 8
Tom would not receive any money for volunteering. Try again.
A wage refers to the money paid for each hour worked.
This is an example of a salary. Try again.
One of the answers above is correct. Try again.
Choose the answer that is an example of a wage.
Paychecks, Wages, and Salary
Click on the correct answer.
Jenny's wage is $6.00 per hour.
Which of the following is not true?
If Jenny works two hours, she will earn $10.00.
Jenny should make sure she is paid the correct amount of money.
The more hours Jenny works in a week, the more money she will earn.
If Jenny works three hours, she will earn $18.00.
Question 5 of 8
For two hours work, Jenny will earn $12.00, not $10.00.
This statement is true. All employees should make sure they are paid what they earned. Try again.
This statement is true. The more hours Jenny works, the more she will earn. Try again.
This statement is true. $6.00 × 3 hours = $18.00. Try again.
You are looking for the answers that is not true.
Paychecks, Wages, and Salary
Click on the correct answer.
Jane works for a salary of $1,200.00 per month.
Which statement is true?
If she works four extra hours, she will get more money.
She is paid this amount regardless of how many hours are necessary to complete her work.
Her employer could pay her $900.00 instead of $1,200.00.
None of the above
Question 6 of 8
Extra pay for extra hours applies only to wages. Try again.
A person earning a salary receives a fixed amount of money.
This is not true of a salary. Try again.
One of the answers above is correct. Try again.
Choose the answer that best describes a salary.
Paychecks, Wages, and Salary
Click on the correct answer.
Tina's salary is $1,800.00 per month, and she is paid twice a month. How much of her salary will she get in each check?
She'll get $9.00 per hour for 40 hours a week.
She'll get one-half of her monthly salary.
She'll get $900.00 per week.
None of the above
Question 7 of 8
Tina is paid a salary, not an hourly wage. Try again.
Since she is paid twice a month, each check will be one-half of her salary ($900.00).
If she were paid $900 per week, she would be earning more than $1,800 per month. Try again.
One of the answers above is correct. Try again.
Remember the definition of salary.
Paychecks, Wages, and Salary
Click on the line that correctly completes the sentence.
Jake just received his paycheck for the month.
He should __________.
wait for his employer to give him cash
lay the check on the dashboard of his car
deposit or cash his paycheck as soon as possible
place the check on top of the recycle pile
Question 8 of 8
His employer has already paid him. He should do something with the paycheck. Try again.
A paycheck is money and should be handled with care. Try again.
His paycheck is money! He must treat it with care.
A paycheck is money and should be handled with care. Try again.
Remember the definition of paycheck.
Paychecks, Wages, and Salary