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Payroll Calculation & Rounding off:

 

Consider being the owner of a small business (Cupcake Shoppe, Lawn Service, Automotive Repair Shop, etc) and aspect you're responsible for is paying your employee or employees.  Provide an example of how you'll calculate paying your employee for one week (40-hrs) at a rate of $19.55/hr. Now your employees want to be paid in Peso (MXN) and the current exchange rate is 0.0529. 

 

The total should shows four or five places beyond the decimal and you'll have to round up or down. You will explain who keeps the difference, the owner or employee after you round it back to 2-places beyond the decimal.  This is similar to the price you pay for gas 1/10 of a cent below a break point.  You won't find the tenths of a cent on your paycheck, so where does it go?

 

 

the employees should recieve (40) * (19.55) = $782 right?

im not sure how to do the conversion part

is it like this 782 * .0529 = 41.3678?

if this is correct then who keeps the difference?

 Nov 16, 2019
 #2
avatar+1816 
+2

Why did you repeat your question? Your example at the end is not correct –it’s absurd.

 

The total should shows four or five places beyond the decimal and you'll have to round up or down. You will explain who keeps the difference, the owner or employee after you round it back to 2-places beyond the decimal.  This is similar to the price you pay for gas 1/10 of a cent below a break point.  You won't find the tenths of a cent on your paycheck, so where does it go?

 

The quick answer to your question “where does it go,” “who keeps the difference,” is simple: The fractional payments are distributed in other pay checks. No single person or entity “keeps” the fractional parts of the payments.  To clarify, the payments rounded down are used for payments that are rounded up.

 

Converting US dollars to Pesos

The exchange rate is $0.0529 per Peso. So it’s necessary to divide the dollars by the exchange rate to convert to Pesos.

For your example: (40) * ($19.55/hour) = $782.00

($782.00) / (0.0529) = 14782.608 Pesos

 

In finance (payables), the value of the third decimal is used to determine if the second decimal is rounded up or remains the same. If the third decimal is five (5) or higher, then the second decimal is incremented. If third decimal is four (4) or lower, then the second decimal remains as it is. Using this criterion, the pay check for this employee is 14782.61 Pesos; it’s rounded up to the next centavo.

 

Theoretically, half the time this third decimal will range from (5) to (9) and the half the time it will range from (0) to (4).  Thought this is true, when the third decimal is zero (0), there is no fractional value, so it does not generate any excess. The fraction that is collected for 4, 3, 2, and 1, pays for 9, 8, 7, and 6; but the zero (0) does not pay for the five (5).  This sounds trivial, but after a million paychecks, the company pays an extra 1000 Pesos –about $52.92.   

 

This confirms the old maxim: Watch your centavos closely, the pesos will take care of themselves.  Listillosmiley

 

 

GA

 Nov 16, 2019
edited by GingerAle  Nov 16, 2019
 #3
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-2

So what is the answer?

Guest Nov 16, 2019
 #5
avatar+1816 
0

JESUS CHRIST!! Are you having a bad day or are you just fucking stupid?

Read my goddamn post! I clearly answer your question! The answer is in boldface.

 

I have questions for you:

How did you ever figure out how to post on this forum? 

How is it that you are still alive?

 

Darwin’s natural selection takes too long!  

GingerAle  Nov 16, 2019
edited by GingerAle  Nov 16, 2019

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