The wages earned in one work period is an amount anyone can use to total an income. Keep track of the earnings made by contributing work to the business enterprise. For the basic record, do not worry about frills, perks or fringe benefits.
Plan to always know how much is made. Count wages regularly.
Put these things together before starting the wage counting.
Work calendar
Time sheets
Daily wages sheets
Monthly log for one year
Paper
Pencil or pen
Calculator (optional)
1. Record earnings on each day. For each day on the work calendar, make daily sheets that have columns for the morning period and the afternoon to evening period. Lay in columns for additional time periods that might get used for extra work or special assignments. Include one column at the right end for the day’s total. Label the rows with the type of work activity. Regular work is the standard row label.
Use the hours and minutes recorded on the time sheet. Multiply the hours and fraction in one period times the pay rate for that period. Enter the result in the column. Once the wages are entered for the entire day, count the wages and enter in the right hand column.
If there is more than one type of work for that day, count the right column entries. Write the day’s amount in the row below the last type of work.
2. Total earnings at the end of every month in the year. On the 30th, 31st or 28th, at the end of the day, sum the month’s wages. Use the day counts in the right hand column at the bottom.
3. Keep a monthly earnings log. After the count is done for each month, place the total in the appropriate month.
4. Account for hours worked at a higher pay rate. Use the rows below the regular work to put the wages from extraordinary work on the daily sheet. Use the higher rate to multiply the overtime, double time or special rate hours recorded on the time sheet.
5. Add holiday, vacation and sick pay to each day’s wages sheet. These wages have separate rows, below the day’s count. Always keep these rows for indirectly earned compensation separate from the rows for the regular pay rate.
Ask the boss for the compensation rate for each type of leave. Also make sure to find out if workers get paid for unused leave. Many employers pay out at the end of a year, or when a worker finishes their position. Remember that these dollars might not be seen until later, or not at all.
6. Tack on any bonuses and merit pay. When paid for good performance, put down the dollar amounts on the monthly log, noting the period the performance earnings were earned. If the period crosses months, note the period on each and write the dollar amount in the last.
Tip
Prepare daily wage sheets before the beginning of each month.
Source:
Wages at the Department of Labor’s Wage and Hour Division.