B. Income Math 10: A and W WA10.11 Demonstrate understanding of income including: wages salary...
105
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.
B. Income Math 10: A and W WA10.11 Demonstrate understanding of income including: wages salary contracts commissions piecework self-employment gross pay
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
Slide 16
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.
Slide 24
Example 1
Slide 25
Example 2
Slide 26
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
Slide 28
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.