https://www.khanacademy.org/math/financial-mathematics-tx-teks/x647545bbd61df4a7:employment/x647545bbd61df4a7:basics-of-employment/v/employment-vocabulary 2026-01-22T18:50:34.080578808Z Employment vocabulary When it comes to employment, the main ideas are understanding your wage rights, like minimum wage and overtime pay, and knowing the difference between a W2 employee and a 1099 contractor, which affects how you handle taxes. Sal Khan video https://cdn.kastatic.org/ka_thumbnails_cache/e72248b6-e632-4fe8-ad98-fec633d488a2_1280_720_base.png Employment vocabulary When it comes to employment, the main ideas are understanding your wage rights, like minimum wage and overtime pay, and knowing the difference between a W2 employee and a 1099 contractor, which affects how you handle taxes. https://cdn.kastatic.org/ka-youtube-converted/LHwIGwc82K0.mp4/LHwIGwc82K0.mp4 372 Basics of employment https://www.khanacademy.org/math/financial-mathematics-tx-teks/x647545bbd61df4a7:employment/x647545bbd61df4a7:basics-of-employment/v/calculating-gross-pay-with-overtime 2026-01-22T18:50:34.080578808Z Calculating gross pay with overtime Gross pay with overtime is calculated by paying regular hours at the normal hourly rate and any hours over 40 in a week at 1.5 times that rate. The total gross pay is the sum of regular pay and overtime pay. Sal Khan video https://cdn.kastatic.org/ka_thumbnails_cache/8f17452d-da80-40de-b085-513bb5aec7e1_1280_720_base.png Calculating gross pay with overtime Gross pay with overtime is calculated by paying regular hours at the normal hourly rate and any hours over 40 in a week at 1.5 times that rate. The total gross pay is the sum of regular pay and overtime pay. https://cdn.kastatic.org/ka-youtube-converted/qg-8X4JW5uk.mp4/qg-8X4JW5uk.mp4 148 Basics of employment https://www.khanacademy.org/math/financial-mathematics-tx-teks/x647545bbd61df4a7:employment/x647545bbd61df4a7:basics-of-employment/v/calculating-pay-for-exempt-vs-non-exempt-employees 2026-01-22T18:50:34.080578808Z Calculating pay for exempt vs non-exempt employees Sometimes non-exempt employees can earn more than exempt employees because they are paid overtime for extra hours worked. Exempt employees usually earn a fixed salary, so their pay doesn’t increase when they work longer hours. Sal Khan video https://cdn.kastatic.org/ka_thumbnails_cache/994a3051-096a-434b-8b26-2310ca17c37f_1280_720_base.png Calculating pay for exempt vs non-exempt employees Sometimes non-exempt employees can earn more than exempt employees because they are paid overtime for extra hours worked. Exempt employees usually earn a fixed salary, so their pay doesn’t increase when they work longer hours. https://cdn.kastatic.org/ka-youtube-converted/HxNI_2lfhJE.mp4/HxNI_2lfhJE.mp4 222 Basics of employment https://www.khanacademy.org/math/financial-mathematics-tx-teks/x647545bbd61df4a7:employment/x647545bbd61df4a7:basics-of-employment/v/calculating-backpay 2026-05-19T15:01:06.510424772Z Calculating back pay Even when an employee is paid a flat amount, like $200 per week, the employer must ensure that the pay still meets minimum wage requirements based on hours worked. If it doesn’t, the employer is required to provide back pay to cover the shortfall. Sal Khan video https://cdn.kastatic.org/ka_thumbnails_cache/b1b6d5b1-7533-4dbc-9cda-fa61dc202a2c_1280_720_base.png Calculating back pay Even when an employee is paid a flat amount, like $200 per week, the employer must ensure that the pay still meets minimum wage requirements based on hours worked. If it doesn’t, the employer is required to provide back pay to cover the shortfall. https://cdn.kastatic.org/ka-youtube-converted/LI2o3MNwEJ4.mp4/LI2o3MNwEJ4.mp4 78 Basics of employment https://www.khanacademy.org/math/financial-mathematics-tx-teks/x647545bbd61df4a7:employment/x647545bbd61df4a7:basics-of-employment/v/calculating-wages-when-earning-tips 2026-01-22T18:50:34.080578808Z Calculating wages when earning tips When you earn tips, your employer is allowed to pay a lower base hourly wage, assuming tips will make up the difference. However, if your tips plus base pay don’t add up to at least the state minimum wage, your employer is required to cover the gap. Sal Khan video https://cdn.kastatic.org/ka_thumbnails_cache/7a1d6ee4-d25b-4136-bc3e-4524a35cb25a_1280_720_base.png Calculating wages when earning tips When you earn tips, your employer is allowed to pay a lower base hourly wage, assuming tips will make up the difference. However, if your tips plus base pay don’t add up to at least the state minimum wage, your employer is required to cover the gap. https://cdn.kastatic.org/ka-youtube-converted/OrLn73I_pI0.mp4/OrLn73I_pI0.mp4 181 Basics of employment https://www.khanacademy.org/math/financial-mathematics-tx-teks/x647545bbd61df4a7:employment/x647545bbd61df4a7:basics-of-employment/e/calculating-wages 2026-06-29T19:40:46.038950604Z Calculating wages Practice calculating wages affected by the laws related to minimum wage, overtime, income from tips, exempt and non-exempt status. Elvira Valdez exercise