Payroll System free essay sample

Net Compensation Unlimited number of rewards and profit Unlimited number of pay changes Commissions and piece rate calculations Special runs and thirteenth month calculation Retirement/last make good on Computation of expense, SSS, Philhealth, and hdmf can be turned on/off User indicated repeating salary Deduction Unlimited number of advance kinds Unlimited number of finding types Maintains credit amortization and parities User determined repeating reasonings Government User editable Philhealth contribtion User editable SSS commitment User editable retention charge Beginning year to date passages Configurable Philhealth contribtion Configurable SSS commitment Configurable retention charge Beginning year to date passages Diskette Submissions SSS pay advances diskette SSS month to month settlement diskette SSS net month to month commitment list (mcl) SSS net pre-approval record (pvf) phic rf-1 diskette hdmf premium settlement diskette hdmf credit installment diskette BIR alphalist diskette bank explicit organizations of bank sees FOR EXEL Payroll Systems Companies can utilize Microsoft Excel to keep pay subtleties. In this movement you will make an organization finance table and pay counsel slips for the individual workers. The information for the finance framework has been set up for you; your undertaking will be to finished the equations. Stacking the Payroll Template ?1? Burden? Microsoft? Exceed expectations, ? or on the other hand? close? the? current le. 2 Click on the OPEN symbol in the QUICK ACCESS TOOLBAR or in the OFFICEBUTTON. Access the CHAPTER 16 organizer of the EXCEL 2007 SUPPORT FILES and burden the format: PAYROLLSelecting YES to the READ-ONLY exchange box. 3 There are two worksheets in the layout. Investigate the PAYROLL sheetwhich will show the compensation subtleties for all workers. Snap on the PAY ADVICE sheet. It will show the compensation subtleties for an individual worker. The worker would get the PAY ADVICE printout when they get their compensation. ? 4? Spare the layout in your STORAGE organizer under the document name: Ch16 EvesalonRemember to kill the READ-ONLY RECOMMENDED choice. Finishing the Payroll Worksheet The principal sheets the finance sheet indicating the compensation subtleties for all the representatives of the organization. 1 Ensure that the PAYROLL worksheet is on the screen. 2 Position the cursor At cell G12. We have to ascertain the OVERTIME RATE OFPAY. It is 1. multiple times the NORMAL PAY RATE. 3. In cell G12 enter the fomula:E*12=1. 4. Auto fill the equation down for different representatives. 5 The GROSS PAY is the all out week after week pay earned by the representative before conclusions are taken out. We have to duplicate the NORMAL HOURS by the NORMAL PAY RATE and the OVERTIME HOURS by the OVERTIME RATE at that point include the two outcomes together. 6. Move the cursor to cell H12 and enter (D12*E12) + (F12*G12). 7. Auto fill the recipe down for different workers. NOTE: The sections in the GROSS PAY recipe are not so much fundamental, however they help to isolate the two count segments and make the equation more clear. 8. The SUPERANNUATION is the sum contributed by employee’s eachweek to a retirement finance. It is generally a level of the employee’s Gross Pay. We will utilize a pace of 5% here. 9 Set the cursor at cell I12 and enter:= H12 * 5% ?at that point? auto? ll? the? equation? down? for? different workers. The Tax Calculation Normally the TAX is determined through a progression of queries which you did in anearlier section. This should be possible at the privilege of the finance and set not to printwhen the finance is printed. To make things a little simpler we will utilize a base taxrate of 25%. Set the cursor at cell J12 and enter:= H12 * 25%â then? auto? ll? the? equation? down? for? different workers. Figuring the Net Pay The NET PAY is the GROSS PAY short the findings (superannuation and assessment), Set the cursor at cell K12 and enter:= H12 I12 J12 at that point? auto? ll? the? equation? down? for? different workers. Printing the Payroll The? print? zone? needs? to? be? checked? so? that? the? entirety? finance ts? on? one? page? furthermore, the ORIENTATION should be set to LANDSCAPE 1 In the PAGE LAYOUT tab of theRIBBON set the ORIENTATIONicon to LANDSCAPE and the SIZEicon to your printer’s paper size (itis likely A4).â 2 Highlight the entire finance (cellsA1 to K17) and set the PRINTAREA symbol in the RIBBON to SETPRINT AREA. 3 PRINT PREVIEW the table at that point print a duplicate and check over it. The Pay Advice Worksheet Each pay day the representatives are offered pay guidance sheets with their compensation. We canuse Microsoft Excel to make a compensation exhortation sheet that can import esteems from thePAYROLL worksheet and print this compensation counsel sheet for every representative. Theemployee CODE is utilized to interface the two sheets together. The CODE comprises of the ? rst? three? letters? of? the? employee’s? family name? what's more, the? number? 50. On the off chance that? two? or?â more? employee’s? have? the? same rst? three? letters? in? their? last name,? the rst? in sequential order? name gets the number 50, the second 51, the third 52, and so on. A Naming the Payroll Cells It is worthwhile to name the PAYROLL table cells with the goal that entering the formulasin the PAY ADVICE sheet is simpler. 1 The PAYROLL sheet ought to be on the screen. B Sorting The Payroll Before beginning the PAY ADVICE sheet it is important to guarantee that the PAYROLL table? is? arranged? into? CODE? request. The? query? equations? will? not nd? the? right? values if the PAYROLL table isn't in CODE request. 1 With the cells A12 to K15 still featured, click on the SORT FILTER symbol in the HOME tab of the RIBBON and select: SORT A TO Z. 2 Click on a cell to evacuate the feature and the PAYROLL table ought to be in CODE request. Related Literature Payroll System is an adaptable remuneration organization arrangement. It is intended to help human asset experts just as fund and bookkeeping faculty to oversee representative remuneration, derivations, recompenses, and advantages in an association. The framework is coordinated with the Employee Information System, offers productive highlights and usefulness to oversee companys costs (www.â blastasia. com, 2007). The requirement for computerization explicitly in a Payroll System emerge because of the multifaceted nature of the ascertaining undertakings . For representatives, the compensation gives the impulse to work proficiently. In this manner, it is significant from the perspective of the association just as the worker â€that the compensa tion is determined on time with no blunders. A speedier and precise upkeep of the finance turns into a matter of significance, and this is accomplished through mechanization to a huge degree. Mechanized Payroll System is a spontaneous creation of the manual Payroll Process. It offers extraordinary advantages to the association by improving the channel of stream of data and furthermore giving simple recovery of data (www. churmura. com, 2010). The PAYROLL SYSTEM is utilized to keep up a rundown of employees’ names, locations and business data and is utilized to intelligently compute and print finance checks. Employees’ hours are entered and dispersed to proper Department/cost focuses. Annualized charge tables are then used to consequently figure reasonings before the check is imprinted on bank stock. Month to month and quarterly reports are utilized to get ready duty filings, and give logical data. W-2’s can be created consequently at year-en (www. infonetx. com, 2009). â€Å"Employees who handle finance planning and preparing would now be able to take care of other office needs and worries as the new finance framework will diminish their workload,† she included. Under the new finance framework, readiness and preparing of finance, which mirrors the gathered sum payable each fifteenth and 30th day of the month, is done just a single time. Dissimilar to the tedious old finance framework, readiness and preparing of finance is done two times per month covering the main half and second 50% of the month. It might be reviewed that Mayor Constantino Jaraula requested a week ago the selection of the new electronic finance framework which is relied upon to produce results beginning the long stretch of October (www. misamisprobe. wordpress. com, 2007). Theoretical Framework It shows the applied system of the investigation. Representatives working information, for example, the occasions in and out from the work fills in as the information. Employee’s records and the accompanying: SSS, PAG-IBIG and others kinds of reasonings are prepared put away in the finance framework. The information being put away in the framework are then handled and produce the finance or the month to month compensation of its representatives as its yield.

Ballads of Remembrance by Robert Hayden :: Robert Hayden

In 1962 Robert Hayden composed an assortment of sonnets entitled Ballads of Remembrance. This assortment is involved 36 sonnets that are isolated into 4 gatherings. Each gathering alludes to an alternate focal point of recognition; for instance, one gathering centers around the battle of African Americans as far as discovering character and a feeling of greatness. Those Winter Sundays is a piece of the gathering of sonnets that centers around recognitions of Hayden’s adolescence, past, and individual battles. Hayden had an amazingly cruel and clashed youth. His folks were separated at a youthful age, and his mom left him with a temporary family in Detroit whose name, Hayden, he wound up embracing. He experienced childhood in a poor neighborhood called Paradise Valley, which was not a heaven by any means. He had separate issues with his non-permanent mother and father, who were both harsh individuals. His dad urged Robert to increase instruction so as to lift himself out of neediness. However, simultaneously, his dad thought that it was hard to speak with his encourage child, who consistently had his head in a book or was continually contemplating. The absence of verbal correspondence between his dad and himself can be found in his sonnet Those Winter Sundays. The general impression of the sonnet is that adoration can be conveyed in different manners than through words; it very well may be imparted through regular, ordinary activities. For instance, in the sonnet, the dad stirs on Sundays as well to warm the house with a fire and clean his children shoes. There is a feeling of briskness in the start of the sonnet through the lines: Sundays too my dad rose early what's more, put his garments on in the blueblack cold. Hayden’s father isn't just carrying physical warmth to him by making the fire; he is likewise carrying otherworldly warmth to him. Before the finish of the sonnet, the peruser feels a general feeling of warmth as the artist goes to a superior comprehension of his father’s undervalued activities. As far as Romanticism, the possibility of greatness is by all accounts present in the sonnet with respect to the way that the dad child relationship is incredible. The relationship exists, however it is hard to explain. Additionally the possibility that Hayden is ascending to a more profound comprehension of his relationship with his dad is available. There are lines in the sonnet that state: At the point when the rooms were warm, he’d call, What's more, gradually I would rise and dress.

5 Comics to Watch For in May 2016

5 Comics to Watch For in May 2016 Everything Is Teeth by Evie Wyld and Joe Sumner As a child exploring heat-drenched Australia every summer, Evie Wyld was obsessed by the sharks roaming the coasts. Their quiet power extends over her imagination even now as an adult, and she compares sharks to the irresistible forces in her history that course through life unseen, ready to emerge at any moment. Wylds last book, All the Birds, Singing, was a prose novel, so Im very intrigued by her decision to tell the story of her life through a graphic memoir illustrated by Joe Sumner. Thoreau: A Sublime Life by A. Dan and Maximilien Le Roy Like any good English major, I love the idea of Henry David Thoreau. But I have to confessI never actually finished Walden. Every time Ive picked it up, Ive mused at the incomparable blend of fresh philosophy and overly detailed natural observationsand Ive been overwhelmed by the richness of his insight and detail. This graphic biography is a perfect opportunity to get to know the man behind the literary legend. And I hope to glean a little wisdom from the father of civil disobediencea concept that resonates with my generation now more than ever. Twilight Children by Gilbert Hernandez, Darwyn Cooke, and Dave Stewart The orbs materialized out of nowhere, blinding children and imbuing them with psychic abilities. Shattering homes and families, attracting a horde of scientists, government experts, and secret agents, the mysterious glowing spheres created tumult in the beachside village. Now Ela has arriveda beautiful, mute woman who appeared as mysteriously as the orbs and seems even more powerful. But does she bring peace or more destruction? And who is truly in danger here? The collection of four mini-comics sounds compelling and fantastical, and if the cover is any indication, the art is gorgeous. Agatha: The Real Life of Agatha Christie by Anne Martinetti, Guillaume Lebeau, and Alexandre Franc Of all the characters she penned, the persona Agatha Christie created for herself was perhaps the most compelling. This graphic biography centers around an episode in 1926 when Christie staged her own disappearance, but it also traces the life of the Queen of Whodunnit from her childhood in England to an adventurous career as a mystery writer and then to her later years as Dame Agatha. Agatha sounds as free-spirited, mischievous, and compelling as the characters weve come to love in her work. Rules for Dating My Daughter: The Modern Fathers Guide to Good Parenting by Mike Dawson Im a sucker for graphic essays that tackle important issues. In Rules for Dating My Daughter, Mike Dawson offers commentary on gun rights, the gender of toys, and raising children in a world where school shootings and Disney princesses are equally commonplace in childhood. Dawson promises to bring humor and insight into the painful conundrums facing modern parents. Sign up to The Stack to receive  Book Riot Comic's best posts, picked for you. Thank you for signing up! Keep an eye on your inbox.

Certain Populations Use Mental Health Care Services More...

Over the years, mental health researchers have become increasingly interested in conducting research pertaining to the utilization rates and the provision of efficacious services to ethnically and racially diverse populations (Sue Sue, 1990). Furthermore, research has concluded that certain populations may utilize mental health services more than others. In particular, individuals from underrepresented and minority populations are less likely to utilize mental health services than other populations due to issues such as cultural mistrust, low socioeconomic status, religious orientations, and perceived stigmas and negative attitudes toward utilizing services (Thurston Phares, 2008). Because of these challenges, research has suggested that a service gap† develops. Thus, many individuals may be in need of services, yet refuse to seek help. This in turn may lead to many issues among diverse populations in regards to seeking mental health services (Cramer, 2009). Not only has t he need for literature increased, but the need for training programs has been identified in assisting on in multicultural awareness, knowledge, and skills (Sue, Arrendondo, McDavis, 1992). A growing body of research suggests that understanding diverse cultural backgrounds and how this might affect the therapeutic process is essential for counseling effectiveness and increasing the utilization of counseling services, especially in the African American community. Early theorists, includingShow MoreRelatedIs Obamacare Affordable Healthcare For 6 Million Latinos1663 Words   |  7 Pageshelp for mental health issues amongst their ever growing population (Rodriguez, 2013). Even though Obamacare ensures affordable healthcare for 6 million latinos, it’s still not enough for the hispanic community who are suffering from mental illness to seek help (Rodriguez, 2013). 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These include the loss of loved ones andRead More Challenges to the UK Health Care System Essay1165 Words   |  5 PagesIntroduction In line with the majority of other developed countries, the United Kingdom (UK) has offered its citizens a universal health care system that is free at the point of service. Funded primarily by taxation, the system is popular and efficient. However, along with most other health care systems around the world, it faces a series of challenges if it is to maintain viability, in the twenty-first century. These issues include; long waiting times, an aging population, funding challenges and the increasingRead MoreServing Mentally Ill Prison Populations Essay1030 Words   |  5 PagesServing Mentally Ill Prison Populations Kylee L. Radcliffe Argosy University  Abstract [The abstract should be one paragraph of between 150 and 250 words. It is not indented. 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The cost of services for mentally ill patients in long-term, chronic care decreased. Initial costs are so high due to the number of resources needed during acute-care; however, as patients require care for longer periods of time, resource needs declines, which in turnRead MoreMental Health Crisis in the African American Community Essay1732 Words   |  7 PagesMental illness is an increasing problem in America. Currently about 26.2% of Americans suffer from a mental disorder. A mental illness/disorder is a medical condition that disrupts a person’s thinking, feeling, mood, and ability to relate to others and daily functions. Mental illness can affect humans of any age, race, gender and socioeconomic status. However the care that is needed to effectively cure and help the people affected by the illness is not equal for everyone here in American, especiallyRead MoreSoftware for Human Services1121 Words   |  5 PagesHuman Services Organization BSHS/375 March 17, 2014 Raymond Smith Software for Human Services Organization Southern Nevada Adult Mental Health Services is an organization that services the mental health population. This population has continued to grow, and because of the increased turnaround in clients served the company had to invest in multiple software products. Electronic Health Record or (EHR) is one of the software programs that are used by Southern Nevada Adult Mental Health Services. This

The State Of Obama s Rhetoric - 1537 Words

Abby Silsby APLANG Period 2 Wells February 3, 2015 The State of Obama’s Rhetoric It is his second to last State of the Union speech, but his first with both houses of Congress in Republican control: On Tuesday night, January 20th, President Barack Obama itemized the achievements of his presidency and his devotion to raising the economic outlook for the middle class. In his address, he effectively outlined his legislative agenda for the up-and-coming year. He accomplishes this by employing a confident and optimistic tone, pronounced diction, and ample support; all in attempt to convince the public, Congress, as well as the 195 countries of the world of his proposals. Obama demonstrates in his 2015 Address, the ability to communicate with†¦show more content†¦This rhetorical technique is powerful linguistic method that invokes inspiration and positivity. People tend to react against things they don’t want to hear. They shut down, stop listening, and start arguing. But, by starting and ending with affirmative mess ages, it circumvents the process. In between Rebekah’s bookends laid out all of Obama’s ambitions and national priorities for the year. It transitions into burdensome situation that American workers are facing like how to provide childcare for employed women and the working class’s demand for a rise in the minimum wage. It discussed Obama’s proposal for free community college so â€Å"student debt doesn’t derail anyone’s dreams.† From there, the address shifted into the deliberation of updating cyber-security based on recent worrisome events. The centerpiece of the president s address was the democratic tax proposal that increases the capital gains rate on couples making more than $500,000 annually to 28 percent. From there, the address segued, into the topic of humanity rights, and the increasing warmer temperatures in the environment. Finally, the address returned back to the underlying grand themes of America and its people. Obama managed to present these main points of his agenda without resembling a grocery list; the successful utilized pattern allowed for smooth transitions throughout. Obama was a surgeon performing heart surgery; he had to make careful and precise rhetorical decisions in

Minimum wages Free Essays

Many economic theories have been proposed to discuss the impact of minimum wages on labor market. The proceedings of the labor market is based on the exchange of resources between the employee and employer, the employee receive wages in return for their labor services to the employer. Labor market is considered to be most competitive market, where the established market price is much closer to the value of the product. We will write a custom essay sample on Minimum wages or any similar topic only for you Order Now Therefore, the employee is likely to receive marginal value, in the competitive market (excluding the factor of minimum wage). Therefore minimum wage laws have been introduced which foresee crisis of unemployment, if fewer employers are interested to hire labor, where as more people are willing to offer their services. Therefore, the law intends to maintain the equilibrium, to avoid social and economic turmoil. The amount of labor supplied by the workers is directly proportional to the nominal wage, a certain increase in the wage, forecast increase in the labor supply. The observation is based on the assumption that an employee hired at a low wage will prefer to consume ‘leisure and forego wages’, a slight increase in the nominal range, it becomes difficult to practice leisure and avoid labor, therefore there is an increase in the number of workers wiling to offer labor. The relationship between the labor supplied and nominal wage is function of different variables including price. A substantial increase in the price level will reduce the number of workers, at all wages (Wascher, 1995). LABOR MARKET AND WAGES There exists an inverse relationship between the nominal wage, and the ‘amount of labor demanded by the organizations’. A substantial increase in the wages is likely to compel the organizations to reduce recruitment schemes. The relationship has been derived on the basis of an assumption that the organization prefers saving for increased proportion of profitability i.e. such level of production is aimed by the organization which increases the profit i.e. the difference between expenses and revenue. The revenue is based on the price of an item, and quantity of the items sold (Christopher, 2005). The expanses include the amount of wages, which is based on the labor and services. Therefore, the company will prefer to maintain a minimum threshold level to secure profit, on the basis of reduction in the wages, as more workers are employed, the labor wage increases which turn the organization less profitable. The price factor may compel the organizations to recruit the employees for all wage levels. minimum wages AND LABOR MARKET: IMPLICATIONS It has been predicted that minimum wage laws are expected to increase unemployment, if minimum wage is established above equilibrium wage. It is because, a large number of employees will be interested in offering their services in exchange for higher wages, on contrary on small and limited number of such opportunities will be available. Also, the organizations will be careful about the recruitment scheme, and ensure that only well qualified people are hired on high wages, therefore there is expected to be little scope for the least skilled and inexperienced employees, thus within the labor market the unemployment level will increase (Kane, 2007). Another factor which has the potential to deteriorate the condition and extend the unemployment crisis is monopsony within the labor market. If the employer has the authority to determine the wages for the employees, it is expected that the unemployment rate will diminish because minimum wage may boost employment. The equilibrium between the labor demand and labor supply will exist only at a point when applied wage is equal to the requirements of the labor and organizations. Wages are more than the equilibrium wage, will result in unemployment i.e. the excess supply of labor. ‘Using the matching function formulation along with Nash bargaining between workers and firms, the results of Hosios inform us that an efficient labor market equilibrium requires that the elasticity of the matching function with respect to the size of the set of searchers be equal to the share of the surplus they receive’ (Kane, 2007). CONCERNS: MINIMUM WAGE It is important to understand that minimum wage is a practice control factor applicable on the labor, which can be regarded as the captivity of the economic rights of the low-paid labors, and their prospects. The increased minimum wage limit is expected to reduce America’s labor freedom index to 87 percent. In the case of free market economy, the maximum utilization of the land, information, capital goods, and labors achieved through price allocation. If the prices are kept free floating, the market is considered to be real free in launch of its economic policies and business plans, which have an impact on the labor market, and the fixture of minimum wage. ‘Estimates of the bargaining power parameter, although significantly lesser than a   percent, are significantly larger than estimates of the match function elasticity and as a result yield an optimal minimum wage rate less than the then current value of $4.25’ (Swinnerton, 1996). Considering the example of an organization, the organization has the right to increase its wages to capture the attention of the labor for the employment. Wages are considered to be suitable indication to discuss the expansion of business activities, and direct employment. ‘Freely floating prices allocate resources efficiently to places where they will take root and boost economic productivity’ (Christopher, 2005). Price signals have been disturbed and distorted through implementations of labor regulations, which hamper market mechanism, and restrict economic freedom of employers and employees. Minimum wage is considered to have significant impact on economic freedom, the labor supply and demand mechanism undergo disruption due to the allocation of government specified minimum wages (Card, 1995). If the situation is not existent, the minimum wage can be regarded as ‘crude instrument’ which relocate the labor market towards efficient allocation. ‘The labor market is not excused from the basic economic principle that artificially high prices cause lower demand’. The National Bureau of Economic Research observed that many analysts were of the opinion that minimum wages have negative impact on the labor market, ‘almost all point to negative employment effects’. More specifically, the study also revealed that there is, ‘relatively overwhelming evidence of stronger unemployment’ impacts on less experienced workers (Swinnerton, 1996). In the case on United States, the proposed federal minimum wage has been avoided by the Congress for more than a decade. The reviewed limit for the minimum wage is expected to raise to $7.25, however analyst are of the opinion that labor market can be served well through expansion of the Earned Income Tax Credit (or EITC, a substantial wage subsidy for low-income workers). According to 2007 Index, more than 90% of the US labor market is considered independent, and the imposition of the minimum wage will not only hamper the status of the labor market, but will reduce the labor freedom factor. IMPLICATIONS The proper approach for ensuring better income for group of workers can be achieved through imposition of minimum wage. The entrance to Labor Market can be achieved through implementation of minimum wage, and this is likely to benefit least qualified individuals. ‘Labor market flexibility refers to the ease with which workers and employers can negotiate mutually advantageous labor contracts’ (Nathalie, 2006). However the implementation of minimum wage has been discouraged by economist, most of the economists are of the opinion that higher minimum wage has failed to achieved the primarily goal of poverty reduction, and is responsible for unemployment. According to a survey by Canadian authorities, 10% increase in the minimum wage was responsible for the direct unemployment of Canadian teenagers by 2.5%. In this context the labor laws play fundamental role, to counter such flaws. Researchers have concluded that, the scheme of tightening of laws about labor relations is responsible for the unemployment. It has been warned that implementation of rigid laws for the minimum wage barrier will affect the performance of the organizations. It is believed that organizations will opt for recruitment of smaller staff, and sought the replacement of workers with machines, and diminishes the performance premiums and other perks, or move switch over their operations ands move to other part. EFFECTS AND ALTERNATIVE (TAX CREDIT) The increase in the level of minimum wage is considered to be blockade for the reformed economic policies of any country; furthermore it disrupts international competitiveness, labor freedom. Labor freedom, like property rights and business freedom, a detailed study report issued by The Heritage Foundation and The Wall Street Journal have concluded that, all these factors are considered to be important parameters for the evaluation of country’s overall economic freedom as measured by the Index of Economic Freedom (Kane, 2007). The labor market should be based on labor freedom to strengthen the scope of economic activities that correlates the ability of workers and businesses to interact without any surveillance or official restrictions by the government. The minimum wage is although considered to be an important measure for supporting the poor and less skilled worker, but such conditions affect the business activity and shatter the economic plans of the organizations, and consequently the labor market is affected (Wascher, 1995). ‘The minimum wage disrupts the natural interaction of supply and demand and leads to inefficient allocations of labor and, eventually, increased unemployment’, on contrary the government discourage the practice of competitiveness, and transform it into level economic battlefield, with restricted scope of advents (Swinnerton, 1996). The sole objective of minimum wage is to provide higher income to low earners, but to avoid the negative fallout of labor market, the execution of such policy should be avoided, and therefore policies based on negative income tax or earned income tax credit should be introduced to favor the low wage earners. Such methodology is considered to be economic efficient. The classical analysis of minimum wage support the idea that higher wage earners should help the low earners, the restriction of higher minimum wage is likely to affect the services and jobs of the low wage earners, therefore the labor market can be strengthen by providing sufficient incentives to ‘ low wage workers at the expense of other low wage workers and businesses employing low wage workers’ (Card, 1995). The alternative scheme of negative income tax or earned income tax credit support the low earners, and it is the over all society that incurs the cost, and this further stabilizes the labor market. The scheme is considered to be economically viable, ‘because, a low tax rate on the broader economy causes less deadweight loss than a high tax rate on a small section of the economy’ (Wascher, 1995). It has been reported that the approved EITC has increased the level of earnings by 40 percent; the proposed $7.25 of minimum wage after taxes for a full-time worker is expected to double the EITC. It is expected that minimum wage and tax credit scheme will rekindle the hope of low earners, and re-link them directly to the benefits of growing economy. REFERENCES Tim Kane, Ph.D. and Anthony B. Kim. A Higher Minimum Wage Equals Less Economic Freedom. 2007. Prentice Hall. pp. 125 Neumark, D. and W. Wascher. Minimum-Wage Effects on School and Work Transitions of Teenagers. American Economic Review 85. 1995. pp. 244-249. Card, D. and A. Krueger. Myth and Measurement: The New Economics of the Minimum Wage. Princeton: Princeton University Press. 1995. Swinnerton, K. Minimum Wages in an Equilibrium Search Model with Diminishing Returns to Labor in Production. Journal of Labor Economics 14. 1996. pp. 340-355. Christopher J. Flinn. Minimum Wage Effects on Labor Market Outcomes under Search, Matching, and Endogenous Contact Rates. New York University Publications. 2005. pp. 45 Nathalie Elgrably. The Minimum Wage and Labor Market flexibility. December 2006.Montreal Economic Institute Publications.       How to cite Minimum wages, Essay examples

Minimum wages Free Essays

Many economic theories have been proposed to discuss the impact of minimum wages on labor market. The proceedings of the labor market is based on the exchange of resources between the employee and employer, the employee receive wages in return for their labor services to the employer. Labor market is considered to be most competitive market, where the established market price is much closer to the value of the product. We will write a custom essay sample on Minimum wages or any similar topic only for you Order Now Therefore, the employee is likely to receive marginal value, in the competitive market (excluding the factor of minimum wage). Therefore minimum wage laws have been introduced which foresee crisis of unemployment, if fewer employers are interested to hire labor, where as more people are willing to offer their services. Therefore, the law intends to maintain the equilibrium, to avoid social and economic turmoil. The amount of labor supplied by the workers is directly proportional to the nominal wage, a certain increase in the wage, forecast increase in the labor supply. The observation is based on the assumption that an employee hired at a low wage will prefer to consume ‘leisure and forego wages’, a slight increase in the nominal range, it becomes difficult to practice leisure and avoid labor, therefore there is an increase in the number of workers wiling to offer labor. The relationship between the labor supplied and nominal wage is function of different variables including price. A substantial increase in the price level will reduce the number of workers, at all wages (Wascher, 1995). LABOR MARKET AND WAGES There exists an inverse relationship between the nominal wage, and the ‘amount of labor demanded by the organizations’. A substantial increase in the wages is likely to compel the organizations to reduce recruitment schemes. The relationship has been derived on the basis of an assumption that the organization prefers saving for increased proportion of profitability i.e. such level of production is aimed by the organization which increases the profit i.e. the difference between expenses and revenue. The revenue is based on the price of an item, and quantity of the items sold (Christopher, 2005). The expanses include the amount of wages, which is based on the labor and services. Therefore, the company will prefer to maintain a minimum threshold level to secure profit, on the basis of reduction in the wages, as more workers are employed, the labor wage increases which turn the organization less profitable. The price factor may compel the organizations to recruit the employees for all wage levels. minimum wages AND LABOR MARKET: IMPLICATIONS It has been predicted that minimum wage laws are expected to increase unemployment, if minimum wage is established above equilibrium wage. It is because, a large number of employees will be interested in offering their services in exchange for higher wages, on contrary on small and limited number of such opportunities will be available. Also, the organizations will be careful about the recruitment scheme, and ensure that only well qualified people are hired on high wages, therefore there is expected to be little scope for the least skilled and inexperienced employees, thus within the labor market the unemployment level will increase (Kane, 2007). Another factor which has the potential to deteriorate the condition and extend the unemployment crisis is monopsony within the labor market. If the employer has the authority to determine the wages for the employees, it is expected that the unemployment rate will diminish because minimum wage may boost employment. The equilibrium between the labor demand and labor supply will exist only at a point when applied wage is equal to the requirements of the labor and organizations. Wages are more than the equilibrium wage, will result in unemployment i.e. the excess supply of labor. ‘Using the matching function formulation along with Nash bargaining between workers and firms, the results of Hosios inform us that an efficient labor market equilibrium requires that the elasticity of the matching function with respect to the size of the set of searchers be equal to the share of the surplus they receive’ (Kane, 2007). CONCERNS: MINIMUM WAGE It is important to understand that minimum wage is a practice control factor applicable on the labor, which can be regarded as the captivity of the economic rights of the low-paid labors, and their prospects. The increased minimum wage limit is expected to reduce America’s labor freedom index to 87 percent. In the case of free market economy, the maximum utilization of the land, information, capital goods, and labors achieved through price allocation. If the prices are kept free floating, the market is considered to be real free in launch of its economic policies and business plans, which have an impact on the labor market, and the fixture of minimum wage. ‘Estimates of the bargaining power parameter, although significantly lesser than a   percent, are significantly larger than estimates of the match function elasticity and as a result yield an optimal minimum wage rate less than the then current value of $4.25’ (Swinnerton, 1996). Considering the example of an organization, the organization has the right to increase its wages to capture the attention of the labor for the employment. Wages are considered to be suitable indication to discuss the expansion of business activities, and direct employment. ‘Freely floating prices allocate resources efficiently to places where they will take root and boost economic productivity’ (Christopher, 2005). Price signals have been disturbed and distorted through implementations of labor regulations, which hamper market mechanism, and restrict economic freedom of employers and employees. Minimum wage is considered to have significant impact on economic freedom, the labor supply and demand mechanism undergo disruption due to the allocation of government specified minimum wages (Card, 1995). If the situation is not existent, the minimum wage can be regarded as ‘crude instrument’ which relocate the labor market towards efficient allocation. ‘The labor market is not excused from the basic economic principle that artificially high prices cause lower demand’. The National Bureau of Economic Research observed that many analysts were of the opinion that minimum wages have negative impact on the labor market, ‘almost all point to negative employment effects’. More specifically, the study also revealed that there is, ‘relatively overwhelming evidence of stronger unemployment’ impacts on less experienced workers (Swinnerton, 1996). In the case on United States, the proposed federal minimum wage has been avoided by the Congress for more than a decade. The reviewed limit for the minimum wage is expected to raise to $7.25, however analyst are of the opinion that labor market can be served well through expansion of the Earned Income Tax Credit (or EITC, a substantial wage subsidy for low-income workers). According to 2007 Index, more than 90% of the US labor market is considered independent, and the imposition of the minimum wage will not only hamper the status of the labor market, but will reduce the labor freedom factor. IMPLICATIONS The proper approach for ensuring better income for group of workers can be achieved through imposition of minimum wage. The entrance to Labor Market can be achieved through implementation of minimum wage, and this is likely to benefit least qualified individuals. ‘Labor market flexibility refers to the ease with which workers and employers can negotiate mutually advantageous labor contracts’ (Nathalie, 2006). However the implementation of minimum wage has been discouraged by economist, most of the economists are of the opinion that higher minimum wage has failed to achieved the primarily goal of poverty reduction, and is responsible for unemployment. According to a survey by Canadian authorities, 10% increase in the minimum wage was responsible for the direct unemployment of Canadian teenagers by 2.5%. In this context the labor laws play fundamental role, to counter such flaws. Researchers have concluded that, the scheme of tightening of laws about labor relations is responsible for the unemployment. It has been warned that implementation of rigid laws for the minimum wage barrier will affect the performance of the organizations. It is believed that organizations will opt for recruitment of smaller staff, and sought the replacement of workers with machines, and diminishes the performance premiums and other perks, or move switch over their operations ands move to other part. EFFECTS AND ALTERNATIVE (TAX CREDIT) The increase in the level of minimum wage is considered to be blockade for the reformed economic policies of any country; furthermore it disrupts international competitiveness, labor freedom. Labor freedom, like property rights and business freedom, a detailed study report issued by The Heritage Foundation and The Wall Street Journal have concluded that, all these factors are considered to be important parameters for the evaluation of country’s overall economic freedom as measured by the Index of Economic Freedom (Kane, 2007). The labor market should be based on labor freedom to strengthen the scope of economic activities that correlates the ability of workers and businesses to interact without any surveillance or official restrictions by the government. The minimum wage is although considered to be an important measure for supporting the poor and less skilled worker, but such conditions affect the business activity and shatter the economic plans of the organizations, and consequently the labor market is affected (Wascher, 1995). ‘The minimum wage disrupts the natural interaction of supply and demand and leads to inefficient allocations of labor and, eventually, increased unemployment’, on contrary the government discourage the practice of competitiveness, and transform it into level economic battlefield, with restricted scope of advents (Swinnerton, 1996). The sole objective of minimum wage is to provide higher income to low earners, but to avoid the negative fallout of labor market, the execution of such policy should be avoided, and therefore policies based on negative income tax or earned income tax credit should be introduced to favor the low wage earners. Such methodology is considered to be economic efficient. The classical analysis of minimum wage support the idea that higher wage earners should help the low earners, the restriction of higher minimum wage is likely to affect the services and jobs of the low wage earners, therefore the labor market can be strengthen by providing sufficient incentives to ‘ low wage workers at the expense of other low wage workers and businesses employing low wage workers’ (Card, 1995). The alternative scheme of negative income tax or earned income tax credit support the low earners, and it is the over all society that incurs the cost, and this further stabilizes the labor market. The scheme is considered to be economically viable, ‘because, a low tax rate on the broader economy causes less deadweight loss than a high tax rate on a small section of the economy’ (Wascher, 1995). It has been reported that the approved EITC has increased the level of earnings by 40 percent; the proposed $7.25 of minimum wage after taxes for a full-time worker is expected to double the EITC. It is expected that minimum wage and tax credit scheme will rekindle the hope of low earners, and re-link them directly to the benefits of growing economy. REFERENCES Tim Kane, Ph.D. and Anthony B. Kim. A Higher Minimum Wage Equals Less Economic Freedom. 2007. Prentice Hall. pp. 125 Neumark, D. and W. Wascher. Minimum-Wage Effects on School and Work Transitions of Teenagers. American Economic Review 85. 1995. pp. 244-249. Card, D. and A. Krueger. Myth and Measurement: The New Economics of the Minimum Wage. Princeton: Princeton University Press. 1995. Swinnerton, K. Minimum Wages in an Equilibrium Search Model with Diminishing Returns to Labor in Production. Journal of Labor Economics 14. 1996. pp. 340-355. Christopher J. Flinn. Minimum Wage Effects on Labor Market Outcomes under Search, Matching, and Endogenous Contact Rates. New York University Publications. 2005. pp. 45 Nathalie Elgrably. The Minimum Wage and Labor Market flexibility. December 2006.Montreal Economic Institute Publications.       How to cite Minimum wages, Essay examples