 In this presentation, we will take a look at payroll calculations. We're going to start off with the comparison of annual salary to hourly salary. This could be important when discussing and considering what type of salary to have and the comparison between the annual rate and an hourly rate. If we're given something like an annual rate of 50,000 a year and we want to break down, okay, what is that in terms of basically an hourly rate? We can take the 50,000 and then divide it by, and this is the key, 52 weeks in the year rather than doing something like trying to divide it by 12 months. Remember that 12 months is going to be a little bit less accurate. And just because of the way timing is, it's not perfect. That's why we have the calendars a little off. We got the leap years a little off. But 12 months is going to be more inaccurate than using the weeks in a year, which would be 52, a bit more accurate to use the 52. We do want to know that number for payroll calculations. There's 52 weeks in a year. That would give us the 961.54 per week. Note that this is rounded. It's typically going to be rounded to the penny when we're talking about payroll. And so just be careful of that. When you have it in Excel, Excel will, even though you see it rounded to the penny, use whatever number is actually in the cell when making calculations. So be careful there. If we then take that and divide by 40, the 40 hours in a week, that would give us the hourly rate of $24 and four cents. Now, of course, if we had any kind of calculation where we had a $50,000 a year and we were agreed to work some other number of hours other than 40, like 35 hours or something, then we can divide by 35 and we get our hourly rate in the similar fashion. So of course, the calculation $50,000 divided by 52 weeks in a year gives us 961.53.8, right, rounded to 54. If I use this unrounded number and then divide by 40 hours in a week, I get 24.0384, blah, blah, 24.04. So just be aware of that rounding. Now, we'll take a look at a commission situation. And remember that a commission basically just means that we're going to get paid based on sales typically. So our sales number, whatever the sales number is, we will typically get a percentage of that. And the point of the commission will be to try to get people, of course, to be more motivated to create sales. So there's going to be pros and cons to a commission-based system. The pros are going to be that more people are motivated to spend their time more productively to make sales if they're going to get paid based on a commission base. The downside to that is that we could have sales situations which are more sales driven and people feel more pressured. So if you're in a type of industry where customers don't want to feel pressured or think that the sales force may be too pressuring or having problems between sales individuals, then the commission base can have some problems there. So pros and cons with the commission also note there's pros and cons in terms of how do we do with that minimum wage again in terms of commission because if we don't have the hourly salary, we need to make sure that in essence we're over the minimum wage through the commission to comply with minimum wage requirements. But the commission is pretty straightforward. We will take the sales amount times whatever the commission rate is. If it's 5%, if we're going to pay 5% to whatever sales were made by an individual, then that would be 3,000 in this case. Now we'll take a look at a pay base based on piece rate pay. And that's going to be the concept that we're not going to pay people based on just hours. We're not going to be basing on the sales because if they're not in the sales area, but we may still want to base our sales on performance. And one way to do that is to say if we're making things, how many things were made, we will pay by the units that were produced. So that's going to be a pretty traditional type of payment method. How many units were produced will pay by units produced. So units completed, if we have 50 units completed, whatever the rate then per unit for saying it's $12 per unit, 50 times 12 would give us the 600. Again, there's pros and cons to this kind of pay rate. It only really applies given situations where we're actually producing units and typically units that are all the same. We want units that are all the same in nature. If we're dealing with areas where we have more creative type of units or the quality could differ a lot within units, then this method could have problems, the downside being that people will try to produce more units of lesser quality to try to get paid more. And that's going to be the type of incentive. So if we're making all the same units that have to pass a similar type of quality assurance thing and they're all the same, then this method could be a useful method. The benefit of it of course is that if we pay just hourly, then the tendency, just the incentives that are there are for people to spend less time being productive because it doesn't pay anymore to be productive. So the pro, the benefit, the goal here would be to have people spend their time being productive and pay the more productive people more money through this system. Another problem of course though is that since we're not paying just on hourly rate, it's difficult to apply rules and regulations like the minimum wage. So once again, we have to be careful here to make sure that we still need to track in essence the hourly rate so that we make sure that the payment is qualified and over and in compliance with minimum wage requirements, which are not going to be based on units we produce because that's going to differ from company to company. The minimum wage will typically be based on traditional hourly type of pay. It's very productive. Pay roll, pay it off. Goodbye.