B. Income Math 10: A and W WA10.11 Demonstrate understanding of income including: wages salary...
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- Slide 1
- B. Income Math 10: A and W WA10.11 Demonstrate understanding of
income including: wages salary contracts commissions piecework
self-employment gross pay net pay.
- Slide 2
- Key Terms: Find the definition of each of the following terms:
Benefits Bonus Commission Contract Deductions Gross Pay Minimum
Wage Net Pay Overtime Pay Statement Piecework Salary
Self-employment Shift Premium Taxable Income Tips Wage Semi-monthly
Bi-weekly
- Slide 3
- 1. Wages and Salaries WA10.11 Demonstrate understanding of
income including: wages Salary gross pay
- Slide 4
- 1. Wages and Salaries Math on the Job p. 54 Read through
together and solve
- Slide 5
- Slide 6
- What we just calculated in math on the job for Joseph was his
Gross Pay. Gross pay is the amount of money you make in a pay
period before deductions Net Pay is the amount you make after
deductions which we will talk about more later.
- Slide 7
- Most of you that have had a job will have been paid a fixed
amount paid hourly or weekly. Many tradespeople and people in the
service industry earn wages calculated this way.
- Slide 8
- What are some jobs that you can think of that would be
considered a trade? Plummer, Electrician, Carpenter What are some
jobs that you can think of that would be in the service industry?
Waitress, taxi driver, hairdresser
- Slide 9
- When employees are asked to work more than 40 hours a week (may
be more or less depending on job, union, etc.) this is referred to
as overtime When people work overtime their pay increases. What is
reasonable for a pay increase for overtime work? Usually time and a
half or double time
- Slide 10
- A Raise is different than overtime because a raise is an
increase in your wage that is received all the time while overtime
is only for hours worked over what you are expected to work.
- Slide 11
- How can you calculate monthly wages when you are paid an hourly
wage? For example, if you make $9.00/h, how much do you make in a
month if you work 8 hours a day?
- Slide 12
- The reason for many raises is because the cost of living
increases, these are cost-of- living raises. These raises are a
result of the cost of living increasing, such as housing, common
consumer goods. If these increase in price it can result in your
wage or salary increasing.
- Slide 13
- Activity 2.1 Interpreting Pay Statements p. 55 Work through the
activity with a partner
- Slide 14
- Slide 15
- Discuss the Ideas Types of Earnings p. 55 Work through
together
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- Slide 17
- 1. People can be paid: Weekly, bi-weekly, semi-monthly, daily,
hourly, annually, by contract, on commission and by piecework 2.
Daily, hourly or weekly paid jobs: Construction, waitress, plumber,
electrician, part time jobs
- Slide 18
- Salary, Bi-weekly, Semi-monthly, and Monthly paid jobs: Full
time jobs, teaching, administration jobs, management Piecework:
Delivering newspaper or flyers, manufacturing, sewing, flooring
installation, and cabinet installation
- Slide 19
- Commission: Retail sales, car sales, and selling real estate
Contract Work: House painting, construction work
- Slide 20
- 3. Advantage of being paid weekly is you get more pay periods
(52 a year instead of 12 per year) and you would get paid sooner
when starting a new job A reason workers are not paid weekly is it
would be very expensive for an employer to calculate payroll every
week.
- Slide 21
- 4. Most people on salary do not get paid overtime but often get
something in return for putting in extra hours in lieu of payment.
For example I get EDOs for coaching volleyball, track, etc.
- Slide 22
- Mental Example Hoe many hours are there in a work week that is
made up of five 7.5 hour days? How many hours would that be in a
year?
- Slide 23
- In your binder list three of your favorite leisure activities
Now try to think of 2 or 3 jobs that you might find interesting
that are linked to these activities.
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- Example 1
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- Example 2
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- Example 3 3. Kelsey s regular rate at her job in a warehouse is
$9.86 an hour. She works 8 hours a day. She has to work a extra
shift on a holiday, and her overtime rate is time and a half. a)
What is her hourly rate on the holiday? b) What are Kelseys gross
earnings for the holiday?
- Slide 27
- Example 4
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- Slide 29
- Activity 2.2 Mind Mapping 1. Create a mind map that connects
kinds of math in different trades 2. Make a chart of job or chores
you have or have had that involve math
- Slide 30
- Mental Example 1. An office assistant who earns $10.00 an hour
was paid $120.00 for 10 hours of work. How is this possible?
- Slide 31
- Building your Skills Ex. 2.1 (p. 60) #1-10
- Slide 32
- 2. Other Ways of Earning Income WA10.11 Demonstrate
understanding of income including: wages salary contracts
commissions piecework self-employment
- Slide 33
- 2. Other Ways of Earning Income Math on the Job p. 64 This is
just one example of how to calculate piecework. You could just
charge an amount for each item produced. Read through together and
solve
- Slide 34
- Slide 35
- Piecework, from Math on the Job, has people paid according to
the number of items they complete For example, a person delivering
flyers at five cents a flyer, or a apple picker paid $0.65 a pound.
The number completed in a hour determines your hourly wage.
- Slide 36
- A Contract is a legal agreement made between 2 or more
partners, that describes the amount of work and type of work and
the amount to be paid. There is often a schedule of payments, with
payments at each stage of a job as it is completed. For example, in
building a house you may get paid when walls are up, roof is up,
shingles, siding, windows, etc.
- Slide 37
- With a contract you get paid the same amount regardless of how
many hours the job takes. What might be a situation where a
contract would be better then being paid by the hour?
- Slide 38
- To win a contract, tradespeople may provide an estimate or bid
and the client selects the winning bid. A contract between the
successful bidder and the client is then negotiated to govern the
terms of the job, including price, schedules, and possibly other
terms that the parties decided to include.
- Slide 39
- Self-Employed people often work on a contract basis with their
clients, and they may run their own business
- Slide 40
- In small groups list advantages and disadvantages each way we
have looked at to earn money.
- Slide 41
- a) Hourly Wage Advantages: set hourly wage, overtime pay
Disadvantages: not paid if not there a) Salary Advantages: set
salary for year, paid for sick days, etc. Disadvantages: no
overtime pay, no encouragement to excel
- Slide 42
- c) Commission Advantages: big money if good Disadvantages: no
set salary, may be slow periods, no money if not good d)
Commission/Salary Advantages: safety as back up Disadvantages:
lower commission
- Slide 43
- e) Piecework Advantages: can make big $ if fast, wage based on
performance, clear relationship between output and wage
Disadvantages: earn less if slow, quantity emphasized of
quality
- Slide 44
- f) Self-Employment Advantages: freedom to select jobs, set own
hours, take time off whenever, own boss, can work alone
Disadvantages: may not have enough clients, no benefits or get paid
for holidays, have to look after own bookings and book keeping
- Slide 45
- Activity 2.3 Piecework vs. Hourly Wage p. 65 With a partner if
you wish work through the activity
- Slide 46
- Slide 47
- Discuss the Ideas Home Reno p. 65 Read through together and
solve
- Slide 48
- Slide 49
- Discuss the Ideas Custom Work p. 66 Read through together and
solve
- Slide 50
- Example 1
- Slide 51
- Example 2. Chelsea works as a sales clerk in a clothing store.
She earns a base salary of $8.00/h plus a 15% commission on the
price before taxes of each item she sells. Her work days is 8
hours. One day, Chelsea sells a suit with a price of $625.00, a
sweater priced at $95.00, 3 t- shirts that cost $45.00 each, and a
raincoat priced at $225.00. How much does she earn that day?
- Slide 52
- Example 3. Jared is a painting contractor. He negotiates a
contract with a homeowner to paint the exterior siding on a house
at a rate of $30.00/h plus the cost of materials. It takes Jared
six 8 hour days to prepare and paint the siding, and he uses 15
gallons of paint that cost $45.00 each. What was the total value of
the contract?
- Slide 53
- Mental Example Jordan earns $800.00 a week as an auto body
technician. His work week is 40 hours. If he works only 35 hours
one week, how much will he get paid?
- Slide 54
- Building your Skills Ex. 2.2 (p. 69) #1-8
- Slide 55
- 3. Additional Earnings WA10.11 Demonstrate understanding of
income including: wages salary contracts commissions
- Slide 56
- 3. Additional Earnings Math on the job p. 72 Most of us are
probably familiar with what a bonus is. A bonus is payment that
employees receive on top of their regular payment as a reward or
incentive. Read through together and solve.
- Slide 57
- Slide 58
- There are other ways though however that you can gain
additional earnings on the job. You have probably contributed to
some ones additional earnings. Tips area a form of additional
income that people in the service industry usually receive. Jobs
like pizza delivery people and hairdressers often receive tips for
doing a good job
- Slide 59
- Bonuses which we looked at in Math on the job are a form of
additional income that are most often related to the job
performances. For example, employers may pay bonuses to staff who
exceeds sales targets or sign up new customers.
- Slide 60
- Some jobs also have shift premiums, especially when they work
non-standard hours. This may also include a job that some regular
hours and some irregular hours. For example, when a maintenance
worker at a hospital you will have a salary but also receive money
on top of that when you are on call and also when you get called
into work outside of your regular hours.
- Slide 61
- Danger Pay is another form of additional pay that is received
by employees that work in a place or a job that endangers their
life. An example would be a reporter that was sent over to Iraq to
cover the war.
- Slide 62
- Isolation Pay is added to salaries of people working in remote,
inaccessible area. Rig workers that work on a rig in remote areas
in Northern Saskatchewan or the NWTs receive this additional
income.
- Slide 63
- Activity 2.4 Babysitting Service p. 73 Work through together
with a partner if you wish.
- Slide 64
- Slide 65
- Discuss the Ideas Earning Tips p. 74 Read through together and
solve
- Slide 66
- Example 1. Kyle works in a bookstore selling books. He also
sells customers reward cards for $30.00 that will give them a
discount on future purchases. His employer gives him a bonus of 10%
of the amount received if he sells more than 20 cards in a month.
If his regular wages are $1883.77 and he sells 27 reward cards one
month, what will Kyles wages be including the bonus?
- Slide 67
- Example 2
- Slide 68
- Why do you think the percentage of regular rate earnings is
different from the percentage of regular hours worked? The hours
are all in the same units while the rate of pay for each type of
hours worked is different
- Slide 69
- Building your Skills Ex. 2.3 (p. 76) #1-8
- Slide 70
- 4. Calculating Net Pay WA10.11 Demonstrate understanding of
income including: gross pay net pay.
- Slide 71
- 4. Calculating Net Pay Math on the Job p. 79 Read through
together and solve
- Slide 72
- Slide 73
- Through out the unit we have been calculating and working with
gross pay however gross pay is not the amount of money you as an
employee get to take home. The amount of money you get to take home
is called you Net Pay.
- Slide 74
- Net Pay refers to the amount of income left after certain
deductions have been made by your employer. Look at the pay
statement on p. 79. What categories of deductions are made from
gross pay?
- Slide 75
- Slide 76
- The categories of deductions are before tax deductions and
taxes.
- Slide 77
- Note: CPP and EI are under taxes, although technically CPP is a
contribution rate and EI is a Premium CPP is matched by the
government and cant be taken out till you retire EI is put in and
can be taken out when you are unemployed
- Slide 78
- a) Based on the pay statement, what % if Harmionies gross pay
does she pay in union dues and what % goes into pension?
- Slide 79
- b) Do you think that deductions are the same for everyone? Why
or why not? Deductions will vary from person to person. Every tax
payer can claim a basic personal exemption (amount of money that
can not be taxed), but you may also be eligible for other
exemptions that reduce the income tax you pay. People in college
for example can claim an exception for their tuition.
- Slide 80
- c) Look at the pay statement. What do CPP and EI stand for and
why do working Canadians contribute to these plans? CPP Canadian
Pension Plan EI Employment Insurance Canadians pay into these plans
to protect them when they no longer can work. EI supplies you with
money when you become unemployed and CPP supplies you with money
when you retire
- Slide 81
- d) The Federal and Provincial deductions on the pay statement
are income tax payments. The amount of income tax you pay varies
according to your personal circumstances and the
province/territories in which you live.
- Slide 82
- When you begin a new job your employer requires you to complete
a TD1 form (Personal Tax Return) to determine the amount of income
tax you should pay. From your TD1 exception claims, you determine
your claim code, which your employer uses to calculate your tax
deductions
- Slide 83
- Most people (and what we will use) are only able to claim the
basic personal amount, which is TD1 claim code 1.
- Slide 84
- e) In addition to paying taxes, people pay amounts from their
gross pay for a range of benefits and programs such as: Health care
plan Long-term disability Dental plan Union dues Pension Plan Life
insurance Savings Plans
- Slide 85
- These are taken from gross pay before taxes are
determined.
- Slide 86
- What are some pros and cons of having deductions like these
being taken directly from your paycheque?
- Slide 87
- Pros You are forced to save money by contributing to pensions
You can use the benefits like the dental plan whenever you need it
Union dues offer job security and bargaining power Cons Reduces the
amount of money that you get to take home
- Slide 88
- When all deductions have been made, the amount remaining the
net pay is paid to the employer.
- Slide 89
- Discuss the Ideas Life Style Benefits p. 80 Read through
together and solve
- Slide 90
- To Calculate CPP contributions we do the following steps: 1.
Find the basic pay period exception. To do this we take the yearly
exception ($3500) and divide it by the number of pay periods in a
year. 2. Subtract the result from step one from the gross pay. 3.
Multiply the result from step 2 by the current years CPP
contribution rate (4.95%). The result will be your CPP deduction
that will be taken from your paycheque.
- Slide 91
- Example 1. You need to calculate the CPP deduction for Amanda.
In 2013, the CPP rate was 4.95% of any gross earnings above
$3500.00.
- Slide 92
- Slide 93
- To calculate the EI premium that will be deducted from your
paycheck you simply multiply your gross pay by the EI premium rate
which is 1.73%.
- Slide 94
- Example 2. Referring to Amandas pay statement, calculate the EI
premium that will be deducted from her weekly pay.
- Slide 95
- To calculate the Income Tax that will be deducted from your
gross pay we need to look it up using the employees TD1 code, the
number of pay periods that the employee has in a year and the
amount of the gross income for that pay period. We will look it up
using the following website: http://www.cra-
arc.gc.ca/tx/bsnss/tpcs/pyrll/t4032/jn10/menu- eng.html
- Slide 96
- Slide 97
- Slide 98
- 3. a) Calculate the amount of income tax to deduct from Amandas
paycheque. Her TD1 claim code is 1, and she live is Alberta. b)
Fill in all the deductions that will be entered on her pay
statement c) Calculate her net pay.
- Slide 99
- Mental Example You know that all your deductions add up to
approximately 38% of your gross pay and you earn $950.00 a week.
Estimate what your net pay will be.
- Slide 100
- Activity 2.6 Comparing Deductions p.84 We will work through
this together
- Slide 101
- Slide 102
- Example 4. Some benefit deductions are not taxable. For
example, union dues and pension contributions are not taxable. a)
In the pay stub, what is the persons taxable income? b) How much
income tax will he or she pay? c) Calculate all the deductions that
this person would have taken from their paycheque and calculate the
net pay. Assume the TD1 claim code is 1, and the province is
Saskatchewan.
- Slide 103
- Slide 104
- Slide 105
- Building your Skills Ex. 2.4 (p. 87) #1-8