UNIT - Thom Collegiatethomcollegiate.rbe.sk.ca/sites/thom/files/Unit 6 uploadable.pdf · Math 11 Unit 6 Objectives p. 1 of 1 . B. Consumer Mathematics . Unit 6 Income Objectives •

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Math 11 Unit 6 Objectives p. 1 of 1

B. Consumer Mathematics

Unit 6 Income Objectives

• To calculate gross wages involving regular pay and overtime.

• To calculate wages involving tips.

• To calculate wages involving piecework earnings.

• To calculate wages involving commission.

• To count hours and calculate gross pay using timecards.

• To understand terminology related to net income.

• To read and interpret pay stubs.

• To determine net pay by calculating deductions.

• To calculate salaries using different pay periods.

Math 11 Unit 6 Introduction p. 1 of 1


Unit 6 Income Introduction

This unit discusses the world of work – namely, making money!

You will learn about and calculate the many ways a

person can earn wages. You will analyze a pay

cheque and determine the various deductions that

come off, as well as perform calculations involving net pay and salary.

Math 11 Unit 6 Outline p. 1 of 1


Unit 6 Income

1. Calculating Wages: Hourly and Overtime Rates Exercise 1

2. Calculating Wages: Hourly Rate Plus Tips

Exercise 2 3. Calculating Wages: Piecework Earnings

Exercise 3

4. Calculating Wages: Commission Exercise 4

5. Working With Time Cards Exercise 5 6. Calculating Wages: Time Cards Exercise 6

7. Net Income Exercise 7 8. Calculating Net Income Exercise 8 9. Calculating Weekly, Monthly, Yearly, Biweekly, and Semi-

Monthly Salaries Exercise 9

Unit 6 Review

Unit 6 Exam

Math 11 Unit 6 Lesson 1 p. 1 of 2

Math 11 SWBAT calculate gross wages involving regular pay and overtime. Unit 6 Lesson 1 1. Calculating Wages: Hourly and Overtime Rates Wages Gross wages are the amount of earnings received before any deductions are made from your pay. Calculations for gross wages can include regular pay, overtime pay, piecework, commission, or any combination of these. In this section, it is imperative that you spend time estimating your answers. Checking for “reasonableness” of answers is very important. Please note: Minimum wage in Saskatchewan is $7.95 (March 1, 2007). Hourly and Overtime Rates A work week in Saskatchewan occurs between Saturday midnight and the following Saturday midnight. Most employees who work for more than 8 hours per day or for any hours over 40 in one week are entitled to overtime (OT) rates. The rate of overtime pay is one and one-half (1.5) times the regular hourly wage rate. This is called ‘time and one-half’. Exceptions to this rule include workers contracted for odd shifts such as nurses, EMT’s, fire fighters, oil truck drivers, and highway construction workers. For weeks in which a public holiday occurs, employees are entitled to overtime rates after 32 hours of work. We will not be dealing with public holiday pay calculations in this course. Refer to http://www.labour.gov.sk.ca/standards/index.htm for specific information pertaining to overtime pay and holiday pay. Steps to Calculate Hourly and Overtime Rates:

1. Calculate the regular earnings by multiplying the number of regular hours worked by the hourly wage.

2. Calculate the overtime pay rate by multiplying the hourly wage by 1.5 (time and one-half).

3. Calculate the overtime earnings by multiplying the number of overtime hours worked by the overtime pay rate.

4. Calculate the gross pay (total earnings) by adding the regular earnings (calculated in step 1) and the overtime earnings (calculated in step 3).

http://www.labour.gov.sk.ca/standards/index.htm


Ex.1. Complete the following by calculating the regular pay, overtime rate, overtime pay, and gross pay.

Regular Hours

Regular Hourly

Rate

Regular Pay

Overtime Hours

Overtime Rate (1.5)

Overtime Pay

Gross Pay

40 $11.50 4.75 40 hours × $11.50 = $460.00 {Step 1: regular earnings} $11.50 × 1.5 = $17.25 {Step 2: overtime rate} 4.75 hours × $17.25 = $81.94 {Step 3: overtime earnings}

$460.00 + $81.94 = $541.94 {Step 4: gross pay}

Regular Hours

Regular Hourly

Rate

Regular Pay

Overtime Hours

Overtime Rate (1.5)

Overtime Pay

Gross Pay

40 $11.50 $460.00 4.75 $17.25 $81.94 $541.94 Ex. 2. Mike worked 40 regular hours in a week at $7.95 per hour and in the same week

he worked 5 overtime hours at time and a half. Calculate Mike’s gross pay for the week.

40 hours × $7.95 = $318.00 {Step 1: regular earnings} $7.95 × 1.5 = $11.925 = $11.93 {Step 2: overtime rate} 5 hours × $11.93 = $59.65 {Step 3: overtime earnings}

$318.00 + $59.65 = $377.65 {Step 4: gross pay}

Exercise 1

Math 11 Unit 6 Exercise 1 p. 1 of 2

Math 11 Unit 6

Exercise 1 Complete the table to find the gross pay for each employee. The overtime rate is time and a half. Round each amount to the nearest cent.

Regular Hours

Regular Hourly

Rate

Regular Pay

Overtime Hours

Overtime Rate (1.5)

Overtime Pay

Gross Pay

1. 37.5 $11.50 3.5 2. 40 $7.95 7 3. 40 $14.00 0 4. 40 $15.50 8 5. 37.5 $12.35 4 6. 40 $8.50 0 7. 40 $13.62 5.5 8. 40 $9.45 8 9. 40 $11.39 5.25 10. 40 $12.45 0 11. 38 $10.78 0 12. 40 $8.98 5 13. 40 $9.75 6 14. 40 $10.35 8 15. 40 $12.95 2.25 16. 40 $10.45 15 17. 25 $12.75 3.5 18. 40 $8.93 6.75

Math 11 Unit 6 Exercise 1 p. 2 of 2 Solve the following problems. Show your work in a table format. 19. Charles Porter works for Sask Power. His regular hourly rate of pay is $9.65 for a 40 hour week. He is paid time and one-half for overtime. One week Charles worked 56.5 hours from Monday to Friday. Find his gross pay for that week. 20. Fern Tucker is a trouble-shooter for the gas company. Her hourly rate is $8.80 for a 40-hour week. She earns double-time pay for each hour she works on holidays and weekends and time and a half for all other overtime. During the third week in November, Fern worked 51 hours, including 5 hours on a Saturday. Find her gross pay for that week. Round each amount to the nearest cent. Be careful!


Math 11 SWBAT calculate wages involving tips. Unit 6 Lesson 2 2. Calculating Wages: Hourly Rate Plus Tips The earnings of persons working in the service industry (waiter, waitress, taxi driver, barber, hairdresser, etc.) are often supplemented with tips or gratuities. Steps to Calculate Hourly Rate Plus Tips: 1. Calculate the regular earnings by multiplying the number of regular hours

worked by the hourly wage. 2. Calculate the amount earned as tips by multiplying the sales by the percentage

for tips. 3. Calculate the total earnings by adding the regular earnings (calculated in step 1)

and the amount earned as tips (calculated in step 2). Ex. 1. Sam worked a 40 hour week at a local restaurant. If Sam earns $10.85 per hour

and on average is tipped 10% of the meals served, what were his earnings for the week if he served $2150.00 worth of meals?

40 hours × $10.85 = $434.00 {Step 1: regular earnings} $2150.00 × 10% $2150.00 × 0.10 = $215.00 {Step 2: tips} $434.00 + $215.00 = $649.00 {Step 3: total earnings} Exercise 2


Math 11 Unit 6

Exercise 2 Complete the table to find one day’s gross pay for each employee at a restaurant. Round each amount to the nearest cent.

Name Hourly Wage

Hours Worked

Meal Sales

Percent of Tips

Regular Earnings

Tips Total Earnings

1. Josh $7.95 10 $250.00 10% 2. Celeste $7.95 6 $115.00 10% 3. George $10.00 5 $82.00 20% 4. Vanessa $12.50 6 $104.00 25% 5. Danny $8.35 8 $212.00 15% 6. Louise $7.95 3 $48.00 15% 7. Leslie $7.95 6 $143.00 10% 8. Jerry $11.80 7 $170.00 15% 9. Anne $11.80 6 $160.00 15% 10. Nancy $11.80 8 $200.00 15% 11. Frank $13.50 5 $240.00 15% 12. Betty $12.75 6 $380.00 15% 13. Carlos $7.95 6.5 $420.00 15% 14. Flo $9.10 5 $270.00 15% 15. Carol $8.00 7 $530.00 15%

Solve the following problems: 16. Brandon takes a taxi to the train station. The fare is $14.65. He wants to give the driver a 15% tip. How much tip should he give the driver? 17. Bryce busses tables at a local restaurant. He gets 25% of the waiter’s tips in addition to $8.95 per hour. The waiter received $255.00 in tips during 16 hours, which Bryce worked. What is Bryce’s total earnings?

Math 11 Unit 6 Exercise 2 p. 2 of 2 18. Joanne served a meal that cost her customers $55.80. She expects a 20% tip. How much did she expect? 19. Sheila ate at a restaurant and the meal cost $15.00. She wants to leave a 15% tip. How much should she leave? 20. Lisa wants to tip the waiter at a restaurant 20% of the $26.50 bill that she received. How

much should she leave in total? What is this rounded to the nearest dollar?


Math 11 SWBAT calculate wages involving piecework earnings. Unit 6 Lesson 3 3. Calculating Wages: Piecework Earnings Some workers get paid not by an hourly rate, but by a job rate. This method of payment is often called “piece work”. Some mechanics are paid a fixed rate for each job they do, not for the amount of time that it takes to complete the job. Hence, the more jobs they complete, the more they will be paid. Steps to Calculate Piecework Earnings: 1. Calculate the earnings for each type of job by multiplying the number of jobs

by the job rates. 2. Calculate the total earnings by adding the job earnings (calculated in step 1). Ex. 1. Tyler worked one day and completed 12 piecework jobs. The job rates are as

follows: oil changes - $10.00; tune-ups - $50.00; tire repairs - $15.00. What were his earnings for the day if he did 6 oil changes, 5 tune-ups and 3 tire repairs?

oil changes: $10.00 × 6 = $60.00 {Step 1: job earnings} tune-ups: $50.00 × 5 = $250.00 tire repairs: $15.00 × 3 = $45.00

$60.00 + $250.00 + $45.00 = $355.00 {Step 2: total earnings} Ex. 2. Greg sews pants. He made 10 pair on Monday, 12 on Tuesday, 9 on Wednesday,

11 on Thursday, and 15 on Friday. He is paid $6.50 for each completed pair. How much did Greg earn this week?

total pairs of pants = 10 + 12 + 9 + 11 + 15 = 57 $6.50 × 57 = $370.50

Exercise 3


Math 11 Unit 6

Exercise 3 Complete the table to find the pay for the job.

Piece Rate Items Produced Pay 1. $1.75 32 typed pages 2. $6.35 5 homemade cakes 3. $72.50 7 advertising signs 4. $180.00 4 band performances 5. $62.00 48 packages 6. $12.40 13 dry-cleaned jackets 7. $120.00 9 repaired computers 8. $9.30 57 cleaned windows 9. $4.50 18 repaired bicycle tires 10. $0.50 395 stuffed envelopes

Complete the table. Find the total items produced and the wages for each employee.

Employee M T W Th F Weekly Total

Piece Rate Wages

11. Arthur 8 9 8 7 10 $5.25 12. Bernie 6 9 10 12 9 $13.20 13. Carol 8 8 8 8 9 $6.22 14. David 5 6 5 6 7 $8.97 15. Eleni 10 11 9 8 12 $4.67 16. Francine 20 20 21 20 23 $2.69 17. Geraldo 41 37 48 35 39 $0.78 18. Hank 65 71 68 73 70 $0.17 19. Ivan 55 57 58 61 63 $0.26 20. Joan 95 89 93 87 86 $0.24

Daily Production

Math 11 Unit 6 Exercise 3 p. 2 of 2 Solve the following problems: 21. Rob earns $48.00 for each table he refinishes. He averages 1 table every 4 hours. What is his average pay for a 40-h week? 22. Jack tunes an average of 5 pianos per day. He is paid $47.75 per piano. What is his average pay for a 5-day week? 23. Frances stuffs an average of 33 envelopes per hour. She is paid $0.20 per envelope. What is her average pay for a 30-hour week? 24. Trina earns $7.50 for each delivery she makes. How many deliveries must she make to earn $375 per week? 25. Hilary earns $40 for each room she paints. If it takes about 2.5 hours to paint each room, how many rooms must she paint to earn $520.00? How many hours will this take her?


Math 11 SWBAT calculate wages involving commission. Unit 6 Lesson 4 4. Calculating Wages: Commission People who sell things are often paid a commission. A straight commission is a percent of the sales paid to the person making the sales. Some salespersons are paid a weekly salary plus a commission on their sales. Steps to Calculate Commission: 1. Calculate the regular earnings by multiplying the number of hours worked by

the hourly rate. 2. Calculate the commission by multiplying the sales by the rate of commission. 3. Calculate the gross pay by adding the regular earnings (step 1) and the

commission (step 2). Ex. 1. Shelley sells shoes. She is paid an hourly rate of $8.10 per hour and a

commission of 5% on all her sales. Last week she worked 40 hours and sold $1980.00 worth of shoes. What was her gross pay for the week?

40 × $8.10 = $324.00 {Step 1: regular earnings}

$1980.00 × 5% $1980.00 × 0.05 = $99.00 {Step 2: commission} $324.00 + $99.00 = $423.00 {Step 3: gross pay} Ex. 2. Lisa earned a commission of $350.00 last month. Her sales were $4400.00. What

was her rate of commission? Round to the nearest whole percent.

Find % of a number: $350

100$4400

Rate of commission 7.95454 8%

×

= =


Ex. 3. Jack’s commission was $620.00 last month. His rate of commission is 10% of

sales. What were Jack’s sales last month?

Set up a ratio:

( )( )

commission rate $620 10so,

sales 100 sales 100

620 100Sales

10Sales $6200.00

= =

=

=

Exercise 4


Math 11 Unit 6

Exercise 4 Complete the table to find the commission.

Sales Rate of Commission

Commission

1. $300.00 15% 2. $2000.00 8% 3. $1500.00 4% 4. $2400.00 5% 5. $1800.00 6.5% 6. $2500.00 4.5% 7. $400.00 6.3% 8. $2700.00 7.2%

Complete the table to find the amount of commission each salesperson earned. Round each answer to the nearest cent.

Name Sales Rate of Commission

Commission

9. Shu $1011.65 21% 10. Kim $981.31 14% 11. Helen $576.43 17% 12. John $489.67 13% 13. Ron $924.58 16% 14. Tara $1143.75 19%

Complete the table to find the gross pay.

Hourly Rate

Hours Worked

Straight Time Pay

Rate of Commiss

ion

Sales Commission

Gross Pay

15. $10.50 40 5% $600.00 16. $16.00 35 10% $1000.00 17. $16.35 40 12% $850.00 18. $8.00 36 8% $550.00 19. $12.00 40 2.5% $2000.00 20. $12.50 40 3% $4500.00 21. $10.00 35 5% $2500.00 22. $14.00 40 3.5% $4000.00 23. $9.00 25 6% $1500.00 24. $12.60 40 4.5% $2800.00

Math 11 Unit 6 Exercise 4 p. 2 of 2 Solve the following problems: 25. Gabby is an auto mechanic. She receives a straight commission of 20% on the repair income that she brings in each week. What is her commission if she brings in $1950.00 of repair income in a week? 26. Donna is a car salesperson. She receives a straight commission of 2.5% of the selling price of each car. What commission will she receive for selling a $22 500.00 car? 27. Gale sold 8 vacuum cleaners. Each cost $98.99. He earns a 9% commission on his sales. How much commission did he earn? 28. Last week Mark earned a commission of $193.70. His sales were $880.45. What was his rate of commission? Round to the nearest whole percent. 29. Good and Co. pays salespeople a commission of 5.5% on gross sales. Last year, the company’s gross sales were $562 900.00. How much did the company pay in commission? 30. Rosa earned a commission of $116.81 last week. Her commission is 15% of her sales. What were Rosa’s sales during this time?


Math 11 SWBAT count hours for timecards. Unit 6 Lesson 5 5. Working With Time Cards Time Cards with Entries in Hours, Half Hours and Quarter Hours Many jobs, particularly entry level ones, are paid on an hourly basis. It is therefore important that employers keep track of the number of hours their employees work. In order to track hours, employers often use time cards, punch clocks or scanners. It is important to be able to calculate the total number of hours on a time card. Calculating entries from a punch card or scanner is done in a similar manner. The entries on the timecards are in hours, half hours and quarter hours. Fractions will be used to find the total number of hours.

¼ hour = 15 minutes ½ hour = 30 minutes ¾ hour = 45 minutes

Ex. 1. What is 2

1 hour, 431 hours and 4

1 hour equal to in hours and minutes?

21 hour = 30 minutes

431 hours = 1 hour and 45 minutes = 60 minutes and 45 minutes 4

1 hour = 15 minutes 30 + 60 + 45 + 15 = 150 minutes 150 minutes ÷ 60 minutes (because there are 60 minutes in one hour) = 2 hours and 30 minutes = 2.5 hrs


Time Cards and Counting Hours Employees’ wages are based on the time that they spend on the job. In time card problems, note that A.M. refers to morning and P.M. refers to afternoon. Steps to Determine the Number of Hours Worked: 1. Subtract the earlier time from the later time (for both A.M. and P.M. time). 2. Find the total number of hours worked. Add the A.M. and P.M. time together. Ex. 2. Scott arrived at work at 9:00 A.M.. He went out for lunch at 12:00 noon. He

returned at 1:00 and worked until 5:00 P.M.. How many hours did he work? A.M. time: P.M. time: 12:00 noon (later time) 5:00 P.M. (later time) - 9:00 A.M. (earlier time) - 1:00 P.M. (earlier time)

3:00 = 3 hours, 0 minutes 4:00 = 4 hours, 0 minutes A.M. time + P.M. time = 3 + 4 = 7 hours

Exercise 5


Math 11 Unit 6

Exercise 5 Add the following: 1. 4

32

14

3 ++ 2. 4

12

14

12

1 +++ 3. 4

32

14

14

3 4333 +++ 4. 4

12

14

32

1 43343 ++++ 5. 4

34

32

1 57787 ++++ 6. 78671 4

12

14

34

1 ++++ Find the number of hours between the following. 7. 8:00 a.m. to 11:00 a.m. 8. 1:00 p.m. to 4:30 p.m. 9. 9:30 a.m. to 11:15 a.m. 10. 1:30 a.m. to 5:15 a.m. 11. 8:30 p.m. to 11:45 p.m. 12. 1:45 p.m. to 4:30 p.m.

Math 11 Unit 6 Exercise 5 p. 2 of 2 Complete the table to find the number of hours worked by each person.

Employee (A.M.) (P.M.) Total

Hours 13. Thomas 3 hr. 30 min. 4 hr. 30 min. 14. Lucille 4 hr. 15 min. 3 hr. 30 min. 15. Reed 6 hr. 45 min. 1 hr. 30 min. 16. Terry 2 hr. 45 min. 5 hr. 15 min. 17. Ed 3 hr. 15 min. 4 hr. 30 min.

Complete the table to find the number of hours worked by each person.

Employee In (A.M.)

Out (A.M.)

In (P.M.)

Out (P.M.)

Total Hours

18. Scott 7:00 11:00 1:00 4:00 19. Gil 10:00 12:00 1:00 6:00 20. Eugene 8:00 12:30 1:00 4:30 21. Sheila 6:30 11:00 2:00 6:00 22. Lorena 9:00 12:00 1:00 5:30 23. Cindy 9:00 12:30 2:00 7:30 24. Barb 8:30 12:30 1:30 6:00 25. Bev 7:30 11:30 1:00 5:00


Math 11 SWBAT calculate gross pay using timecards. Unit 6 Lesson 6 6. Calculating Wages: Time Cards Ex. 1. Fill in the time card below for Bart Smart, a student who works in a hardware store after

school and on Saturdays. He makes $7.95 an hour. First, calculate the number of hours he works each day. Then compute his total weekly hours and his total earnings.

Day

A.M. P.M. Evening Total In Out In Out In Out

Mon. 1:00 5:00 Tues. Wed. 1:00 4:30 Thurs. 5:15 9:00 Fri. Sat. 9:45 12:00 1:30 4:45 Sun. Total Weekly Hours

Total Earnings

Number of hours for: Monday: 4 hours Wednesday: 3½ hours Thursday: 3¾ hours Saturday: 5½ hours

Total Weekly Hours: 4 + 3½ + 3¾ + 5½ = 16 ¾ hours

Total Earnings: 16¾ x $7.95 = $133.16


Day


Mon. 1:00 5:00 4 Tues. Wed. 1:00 4:30 3 2

1 Thurs. 5:15 9:00 3 4

3 Fri. Sat. 9:45 12:00 1:30 4:45 5 2

1 Sun. Total Weekly Hours

4 + 3½ + 3¾ + 5½ = 16 ¾ hours

Total Earnings

16¾ x $7.95 = $133.16

Exercise 6


Math 11 Unit 6

Exercise 6

Find the number of hours each employee worked each day. Then, complete each table, showing all your calculations in the space within the table. Remember that 15 minutes = ¼ hour, 30 minutes = ½ hour, and 45 minutes = ¾ hour. 1. Employee Name: Neil Diamondback Rate of pay: $9.85 per hour

Day


Mon. 8:00 12:00 Tues. 9:00 11:30 Wed. Thurs. 8:15 12:00 Fri. Sat. 9:00 12:00 1:30 4:15 Sun. Total Weekly Hours

Total Earnings

2. Employee Name: Eddie Moneytree Rate of pay: $10.50 per hour

Day


Mon. Tues. 1:00 4:30 Wed. Thurs. 2:15 5:30 Fri. 1:30 5:00 Sat. 6:00 9:15 Sun. 12:30 5:45 Total Weekly Hours

Total Earnings


3. Mayda Green makes $8.25 per hour. Overtime is time and a half (over 40 hours).

Day

A.M. P.M. Total Hours In Out In Out

Mon. 8:00 11:30 12:30 5:45 Tues. 7:45 11:45 12:15 4:30 Wed. 8:00 11:30 12:15 5:30 Thurs. 7:30 11:30 12:30 5:30 Fri. 8:30 12:00 1:30 6:00 Total Weekly Hours

Regular Earnings

Overtime Earnings

TOTAL EARNINGS

4. Wes Tinghouse makes minimum wage ($7.95 per hour). Overtime is time and a half (over 40 hours).

Day

A.M. P.M. Total Hours In Out In Out

Mon. 7:00 11:30 12:30 5:30 Tues. 6:45 11:30 12:30 5:00 Wed. 6:30 11:00 12:00 4:45 Thurs. 7:00 11:45 12:45 5:00 Fri. 7:15 12:00 1:15 5:30 Total Weekly Hours

Regular Earnings

Overtime Earnings

TOTAL EARNINGS


Math 11 SWBAT understand terminology related to net income. Unit 6 SWBAT determine the difference between gross pay and net pay. Lesson 7 SWBAT read and interpret pay stubs. 7. Net Income Terminology

Pay Stub is a record of your pay and deductions.

Social Insurance Number (SIN) is a nine-digit number used in the administration of various Canadian government programs. You will require a SIN to work in Canada or to receive government benefits. Gross Pay (Gross Income) is the total income you earn before any

deductions are made from your pay.

Net Pay (Net Income) is the amount you take home after deductions.

Deductions can include a variety of things such as personal pension plan contributions, union dues, life insurance, charitable donations, parking, etc. The most common deductions are: Income Tax, Employment Insurance, and Canada Pension Plan

Income Tax is used to fund the many programs run by our federal and provincial governments. It is often the greatest of all deductions found on one’s pay stub. We pay both federal and provincial income tax.

Employment Insurance (E.I.) is a social program that helps unemployed Canadians who are between jobs. E.I. provides temporary financial assistance while the unemployed person looks for work, upgrades his\her skills, is pregnant, caring for a newborn or adopted child, or is sick. Payments into E.I. are made entirely by the individual worker.

Canada Pension Plan (C.P.P.) is another social program that provides a measure of protection to a contributor and his/her family against the loss of income due to retirement, disability, and death. You and your employer contribute equal amounts into the plan (unless you are self-employed – then you pay both portions).

With very few exceptions, every person in Canada over the age of 18 who earns a salary must pay into employment insurance and the Canada Pension Plan. Deductions for Income Tax, E.I., and C.P.P. are determined by Payroll Deductions Tables provided by the Canada Revenue Agency (www.cra.gc.ca).

http://www.cra.gc.ca)/


Reading and Interpreting Pay Stubs EMPLOYEE G. Raymond Martin SIN 123-456-789 PAY PERIOD 3/1/___ to 3/15/___ NET PAY $524.28 CHEQUE NO. 060432 PAYROLL ACCOUNT

W ant not ! aist not

Description Hrs. Amount Tax Current YTD Description Amount REGULAR OVERTIME CURRENT YTD

80 05

640.00 60.00

700.00 2100.00

INCOME TAX EI CPP

104.55 20.65 15.52

293.40 160.65 64.08

RRSP

35.00

OTHER DEDUCTIONS DEDUCTIONS GROSS EARNINGS

* Have a discussion about this sample pay stub and identify what each amount refers to. Note: Sometimes the date on a pay stub will appear as Month/Day/Year (as in the example above). It may also appear as Day/Month/Year or Year/Month/Day. Be careful! Extra research… What does YTD mean? What does RRSP stand for? Exercise 7


Math 11 Unit 6

Exercise 7

Answer the following questions using the attached pay stubs. (use the current year) 1. What is the name of Zina Picard’s employer?

2. How much did Zina earn before deductions?

3. What is Zina’s hourly wage?

4. List Zina’s deductions.

Hamburger Palace Enterprises, Inc. NAME PAYROLL ENDING CHEQUE NO. Zina Picard 3/14/__ 9343 EMPLOYEE NO. AMOUNT L4325 $229.33


40

6

360.00 81.00

441.00 3729.00

INCOME TAX E.I. CPP

42.65 8.67 6.35

128.70 126.23 25.41

MEALS

7.00

OTHER DEDUCTIONS DEDUCTIONS EARNINGS


5. What pay period does Peter deBoer’s pay stub cover?

6. How much Income Tax has been taken out of Peter’s pay so far during 20__?

7. How much did Peter contribute to a retirement plan from this pay period?

8. How much is Peter’s take-home pay?

EMPLOYEE PETER H. deBOER SIN 999-999-999 PAY PERIOD 8/6/___ TO 8/12/___ PAY DATE 8/15/___ CHEQUE NO. 3259

The Banana Breadbox Banana Bread…And More!

NET PAY $186.26 PAYROLL


40

6

240.00 54.00

294.00 3582.00

INCOME TAX E.I. CPP

30.75 22.49 9.50

372.01 272.13 114.95

RRSP

HEALTH

30.00 15.00



9. Where does Mary Stone work?

10. What is Mary’s hourly wage?

11. How much money was deducted from Mary’s pay cheque?

12. How much has Mary been paid in total during 20__?

EMPLOYEE Mary Stone EMPLOYEE NUMBER A5926 Dance o- Rama! PAY PERIOD 7/1/___ TO 7/15/___ PAY DATE 7/14/ ___ NET PAY $349.77 CHEQUE NO. 3259

Description Hrs. Amount Tax Current YTD Description Amount REGULAR CURRENT YTD

56

448.00

448.00 3460.00

INCOME TAX E.I. CPP

49.95 34.28 14.00

385.62 264.64 108.08



ACME COMPANY PAYMENT STATEMENT Period Ending: 30/04/07 SMITH, JAMES R. S.I.N. 633-029-428 Employee No. 285 **PAY** CURRENT YTD **DEDUCTIONS** CURRENT YTD Salary 2167.00 8668.00 INC.TAX 336.61 1364.04 C.P.P. 92.83 374.79 EI 42.91 173.02 VAC DAYS 2.5 DENTAL 23.48 46.96 INSURANCE 8.02 31.84 EXT. HEALTH 9.88 19.76 RRSP 20.66 82.02 PENSION 108.35 433.40 NET PAY: _______ GROSS: 2167.00 8668.00 TOTAL DED. _______ 2525.83

Use the pay stub above to answer the following questions: 13. What are the four largest deductions on this pay stub?

14. Calculate the total deductions.

15. Calculate the net pay.

16. What does YTD mean?

17. What percentage of the gross pay is income tax?

18. What percentage of the gross pay is the total of all deductions?


Math 11 SWBAT determine net pay by calculating deductions (Income Tax, E.I., and CPP) Unit 6 Lesson 8 8. Calculating Net Income

The total amount of money you earn prior to deductions is called gross income. Very few people actually receive the full amount of their gross income because deductions for Income Tax, Employment Insurance (E.I.), Canada Pension Plan (C.P.P.), personal pension plan contributions, life insurance, union dues, charitable contributions, etc., are subtracted from your gross income leaving you with what is called net income. Thus, your net income is the amount you have left after all deductions have been subtracted from your gross income. * It would be a good idea to go back and review the terminology from Lesson 7.

Deductions for Employment Insurance

The amount deducted from your pay for employment insurance varies with the amount you earn. In 2005, the maximum one had to contribute to employment insurance was $760.50. Your employer will deduct the appropriate amount shown in the Payroll Deduction Tables each pay period and will stop deductions when your total for the year has reached $760.50. A portion of the table used by your employer is reproduced below. Complete tables for the current year can be obtained from the Canada Revenue Agency website (www.cra.gc.ca).

EMPLOYMENT INSURANCE PREMIUMS (Partial Table 2005)

Income Contribution Income Contribution 250 4.88 1500 29.25 500 9.75 1750 34.13 750 14.63 2000 39.00 1000 19.50 2250 43.88 1250 24.38 2500 48.75

The maximum yearly contribution for 2005 is $760.50

The numbers in the table are appropriate for any pay period. That is, if Joe earns $500 per week, then his deduction for employment insurance will be $9.75 per week. If he earns $500 per month, then his deduction will be $9.75 per month

http://www.cra.gc.ca/


Note: Amounts not shown in the E.I. table and those that are $2916 and up have to be calculated manually (see below). The deduction for 2005 is always 1.95% of the amount earned. Thus, to find the deduction for an amount earned that does not appear in the table, simply multiply the amount by 1.95% or 0.0195. Remember that the maximum annual amount that can be deducted is $760.50 Ex. 1. Determine the amount deducted from your gross pay for employment insurance

a) each pay period, (b) annually, if you earn:

i) $500 per week ii) $2250 per month iii) $5000 per month Deductions per pay period Annual deductions (i) From the table we see that

earning $500 per week will require an EI deduction of $9.75 per week.

Since there are 52 weeks in a year, the annual deduction is 52 ($9.75) = $507. Since this amount is less than the maximum amount that could be deducted, the EI deduction will be $507.

(ii) From the table we see that earning $2250 per month will require an EI deduction of $43.88 per month.

Since there are 12 months in a year, the annual deduction is 12 ($43.88) = $526.56. Since this amount is also less than the maximum amount that could be deducted, the EI deduction will be $526.56.

(iii) The table does not contain the amount of $5000. We can find the EI deduction by multiplying $5000 by 0.0195. The monthly deduction will be (0.0195) ($5000) = $97.50.

There are 12 months in a year so the annual deduction should be (12) ($97.50) = $1170. This exceeds the maximum amount of $760.50 that can be deducted. Thus, the annual EI deduction will be $760.50.

The employer would deduct $97.50 per month for 7 months ($682.50) and then deduct $78.00 in the 8th month until the annual maximum EI amount of $760.50 has been deducted.

Deductions for the Canada Pension Plan

The amount deducted from your pay for the Canada Pension Plan varies with the amount you earn. In 2005, the maximum one had to contribute to this plan was $1861.20. Your employer will deduct the appropriate amount shown in the Payroll Deduction Tables each pay period and will stop deductions when your total for the year has reached $1861.20. A portion of the tables used by your employer for weekly and monthly earnings is shown below. Complete tables for the current year can be obtained from the Canada Revenue Agency website (www.cra.gc.ca).


ARNINGS (Partial Table 2005)

CANADA PENSION PLAN CONTRIBUTIONS FOR WEEKLY E

Income Contribution Income Contribution 100 1.62 600 26.37 200 6.57 700 31.32 300 11.52 800 36.04 400 16.47 900 40.99 500 21.42 1000 45.94

e max arly contr or 2005 is $1861.20

ove $5310.43 per week, the contributions would have to be calculated manually. Our course will not deal with this

CANADA PENSION PLAN CONTRIBUTIONS FOR MONTHLY EARNINGS (Partial Table 2005)

Th imum ye ibution f

Note: If the earnings are not shown on the table, or are ab

method. We will work with tables for CPP only.

Income Contribution Income Contribution 500 10.31 3500 158.82 1000 35.06 4000 183.57 1500 59.81 4500 208.32 2000 84.56 5000 233.07 2500 109.31 5500 257.82 3000 134.06 6000 282.57

axim y contribu 200 20

e table, or are above $6715.09 per month, the contributions would have to be calculated manually. Our course will not deal with this

Ex. 2. etermine the C.P.P. contribution required each pay period for a person whose gross pay :

1500 per month; b) $500 per week; c) $900 per week

a) By reading the 2 table above, the monthly CPP contribution is $59.81. Twelve such contributions total to $717.72. This amount does not exceed the yearly maximum of

use the 1 table above because the earnings are weekly. By reading the

table, the weekly CPP contribution is $21.42. Over 52 weeks, the total contributions will be $1113.84. This amount does not exceed the yearly maximum of $1861.20.

The m um yearl tion for 5 is $1861.

Note: If the earnings are not shown on th

method. We will work with tables for CPP only. Dis

a) $

nd

$1861.20.

b) We have to st


make 45 contributions of $40.99 ($1844.55) and one contribution of $16.65 until the

De

Personal Tax Credits Return forms

und the many programs run by our federal and provincial governments. It is often the greatest of all deductions found on one’s pay stub. Your

g income tax from your pay. New employees are quired to fill out two Personal Tax Credits Return forms (TD1 forms), one for federal

h heir

Based on the amount of your credits, you are assigned a claim code (placed into a category om 0 to 10) and tax is deducted accordingly, the higher the claim code, the smaller the tax

eone who is single, working, and supporting only him/herself would be laced in a lower category – often 1, while someone who is married, supporting a spouse,

d

c) Using the 1st table above, we can see that the weekly CPP contribution for an incomeof $900 will be $40.99. Over 52 weeks, the total contribution will be $2131.48. This amount exceeds the yearly maximum amount allowed. The employee will have to

contributions have totaled the yearly maximum of $1861.20 after which he will no longer be required to contribute for the year.

ductions for Income Tax

Tax on income is used to f

employer is responsible for deductinreincome tax and one for provincial income tax. These forms help determine how mucincome tax is to be deducted. Employees do not have to complete new TD1 forms if tpersonal tax credit amounts have not changed for the year.

Claim Codes:

frdeducted. Sompsupporting an aging, ill, or disabled parent or relative, and has several children will be placeinto a higher category.


xplanation of claim codes:

Claim code 0 This code represents no claim amount allowed. If the federal claim code is “0” because the employee is a non-resident, the provincial claim code must also be “0.”

Claim codes 1 to 10 Match the total claim amount reported on the TD1 form with the appropriate claim codes. Then, look up the tax for the employee’s pay under the claim code in the federal and provincial tax tables for the pay period. See next page. The tables that follow show some of the possible federal and provincial income tax deductions for monthly incomes for a few of the claim codes. Complete tables for the current year can be obtained from the Canada Revenue Agency website (www.cra.gc.ca

E

).

FEDERAL TAX DEDUCTIONS FOR MONTHLY INCOME (Partial Table 2005)

Pay Claim Code From – To 1 3 5 7 9 Less than $715.00 $0.00 $995 - $1003 $42.50 $6.35 $1489 - $1507 $116.80 $80.65 $32.50 $1993 - $2011 $191.90 $155.75 $107.55 $59.35 $11.20 $2477 - $2511 $265.20 $229.05 $180.85 $132.65 $84.50 $2987 - $3021 $343.40 $307.25 $259.05 $210.85 $162.70 $3497 - $3531 $451.50 $415.35 $367.15 $318.95 $270.80 $3973 - $4007 $556.20 $520.05 $471.90 $423.70 $375.50 $4423 - $4475 $657.20 $621.05 $572.85 $524.65 $476.50 $4995 - $5047 $783.00 $746.90 $698.70 $650.50 $602.30 $5515 - $5567 $897.40 $861.30 $813.10 $764.90 $716.70 $5983 - $6035 $1003.50 $967.35 $919.15 $871.00 $822.80 $6503 - $6555 $1138.70 $1102.55 $1054.35 $1006.20 $958.00 $6937 - $7007 $1253.85 $1217.75 $1169.55 $1121.35 $1073.15 $7497 - $7567 $1399.45 $1363.35 $1315.15 $1266.95 $1218.75 $7987 - $8057 $1526.85 $1490.75 $1442.55 $1394.35 $1346.15


PROVINCIAL TAX DEDUCTIONS FOR MONTHLY INCOME (Partial Table 2005)

Pay Claim Code From – To 1 3 5 7 9 Less than $737.00 $0.00 $993 - $1001 $26.65 $3.55 $1493 - $1511 $78.35 $55.25 $24.45 $1997 - $2015 $130.00 $106.85 $76.05 $45.25 $14.40 $2499 - $2533 $182.20 $159.10 $128.30 $97.45 $66.65 $2975 - $3009 $230.95 $207.85 $177.05 $146.20 $115.40 $3485 - $3519 $292.95 $269.85 $239.00 $208.20 $177.35 $3995 - $4029 $359.25 $336.15 $305.30 $274.50 $243.65 $4445 - $4497 $418.90 $395.80 $365.00 $334.15 $303.35 $4965 - $5017 $486.50 $463.40 $432.60 $401.75 $370.95 $5537 - $5589 $560.85 $537.75 $506.95 $476.10 $445.30 $5953 - $6005 $614.95 $591.85 $561.00 $530.20 $499.40 $6473 - $6525 $682.55 $659.45 $ .80 $567.00 628.60 $597$7029 - $7099 $756.00 $732.90 $ .25 $640.45 702.0 $6715$7519 - $7589 $819.70 $796.60 $7 5.7 $73 .95 $704.15 6 5 4$8009 - $8079 $883.40 $860.30 $829.45 $798.65 $767.85


x. 3. By examining the tables on the preceding pages, find the total income tax deductions,

a) 00 per month and has a claim cod

b) a a c im code of 3

a) 0 ran f ra le oss the table until th cl 5 d e s According to tax p t ti 5 , the total tax be

b) 0 ran f ra e ss the table until

th cl 3 d e u will find the ded b T o d ll be $9.90.

Ex. 4. G neer o l s i de is 1. Each

month he contributes $487.00 to a pension . a nd $36.75 to th ciet e t n n’s deductions fo dera l f ductions and th ay. c i p

E.I. (not in table so multiply by 1.95%) $78.00

E both federal and provincial, for someone who is earning:

$40 e of 5

$1000 per month nd has la

Find the $400 ge on the left side o the fede l tax tab . Go acryou are benea aim code . The fe eral tax d duction i $471.90.the provincial table, the rovincial ax deduc on is $30 .30. Thusdeduction will $777.20.

Find the $100 ge on the left side o the fede l tax tabl . Go acroyou are benea aim code . The fe eral tax d duction is $6.35. Yoprovincial tax uction to e $3.55. hus, the t tal tax de uction wi

ordon is an engi whose gr ss month y salary i $4000. H s claim coplan, $51 36 to a he lth plan, a

e engineering sor E.I., C.P.P., fe

y. Use thl tax, and

tables inprovincia

his sectiotax. Find

to determthe total o

ine Gordo all his de

en find his net p What per ent of his gross pay s his net ay?

C.P.P $183.57 Federal tax $556.20 Provincial tax $359.25 Pension plan $487.00 Health plan $51.36 Engineering Society $36.75 TOTAL DEDUCTIONS $1752.13 NET PAY = GROSS PAY – DEDUCTIONS $2247.87

The ratio of Gordon’s net pay to his gross pay is $2247.87.5619

$4000=

Thus, his net pay is 56% of his gross pay. This is just over half!

Do you see how difficult it can be to make ends meet?

Exercise 8


Math 11 Unit 6

Exercise 8

Complete the following chart finding the required monthly deductions. Use the numbers provided from the tables in this section.

Gross Monthly Income

Net ClaimCode

E.I.

C.P.P.

Federal Tax

Provincial Tax

Total Deductions

Net Pay

1. Eugene $2000 1 2. Cindy $2000 7 3. Shelda $2500 1 4. Barb $3000 5 5. Sheila $3000 9 6. Scott $4000 1 7. Bev $4000 5 8. Lorena $5000 9 9. Gil $5000 1 10. Terry $6000 7 11. What is Eugene’s total provincial and federal tax paid for the year? 12. What is Cindy’s total provincial and federal tax paid for the year? 13. Why does Cindy pay less tax than Eugene does even though their monthly salaries are the same? 14. What is Eugene’s yearly deduction for employment insurance? 15. What is Shelda’s yearly deduction for employment insurance? 16. What is Scott’s yearly deduction for employment insurance? 17. What will each of Bev, Lorena, and Terry pay for employment insurance for the year? 18. What is Eugene’s yearly contribution to the Canada Pension Plan? 19. What is Sheila’s yearly contribution to the Canada Pension Plan? 20. What is Terry’s yearly contribution to the Canada Pension Plan?


21. Find Rosella’s net monthly income if her gross monthly income is $3500. Her claim code is 3. She has deductions for E.I., C.P.P., federal tax, provincial tax, $333.18 for her pension plan, $51.88 for a health plan, $29.98 for union dues, and $20.00 for charity. 22. Gary’s gross monthly income is $5000. His claim code is 5. He has deductions for E.I., C.P.P., federal tax, provincial tax, $586.19 for his pension plan, $95.51 for a health plan, and $55.89 for union dues.

a) Find Gary’s net monthly income.

b) What percent of Gary’s gross pay is his net pay?

c) Gary’s net monthly income will actually increase several months from now. Explain why.


Math 11 SWBAT calculate weekly, monthly, yearly, biweekly and semi-monthly Unit 6 salaries. Lesson 9 9. Calculating Weekly, Monthly, Yearly, Biweekly and Semi-Monthly Salaries Weekly Salary Most jobs pay by the hour and a regular job will be 40 hours/week. Therefore to calculate the weekly pay use: wage/hour × number of hours worked Ex. 1. Bill makes $8.25/hour. How much is his weekly pay if he works 40 hours? $8.25 × 40 = $330.00/week Yearly Salary To calculate the yearly salary, take the weekly salary and multiply by 52, which is the number of weeks in a year. Ex. 2. Find Bill’s yearly salary.

$330.00/week × 52 = $17,160.00 Monthly Salary Since there are usually more than 4 weeks in a month, we cannot take the weekly wage and multiply by 4 to get the monthly wage. We have to multiply the weekly wage by 52 (as above), which gives the yearly wage, and then divide by 12 (number of months in a year), which gives the monthly wage. Ex. 3. What is Bill’s monthly salary? $17,160.00/year ÷ 12 = $1430.00/month


Biweekly Salary Some people are paid every two weeks regardless of how many days there are in any particular month. This means they are paid 26 times in one year. If the biweekly wage is known, the yearly salary can be computed using the following formula: yearly salary = biweekly wage × 26 # of payments/year

Ex. 4. Martha makes $582.00 biweekly.

What is her yearly salary? $582.00 × 26 = $15,132.00/year Semi-Monthly Salary Some people are paid on a semi-monthly basis; they are paid twice a month, or 24 times in one year. To calculate the monthly salary, multiply the semi-monthly salary by 2. Ex. 5. Jordan is paid $493.00 semi-monthly. What is his monthly wage? $493.00 × 2 = $986/month Ex. 6. What would Jordan’s yearly salary be? $986.00 × 12 = $11,832.00/year OR $493.00 × 24 = $11,832.00/year Exercise 9


Math 11 Unit 6

Exercise 9

Complete the table for a 40 hour week.

Employee Hourly Wage

Weekly Annual × 52

Pay Period ÷ by

Gross Pay

1. Stan $8.75 monthly 2. Robert $11.25 semi-monthly 3. Josh $8.65 biweekly 4. Carl $7.95 weekly 5. Jose $9.00 semi-monthly 6. Sherry $13.50 monthly 7. Lisa $10.75 biweekly 8. Deanne $15.50 monthly 9. Sharon $12.35 weekly 10. Michelle $17.20 monthly

Complete the table.

Employee Annual Salary Pay Period Pay Per Period 11. Bryan $8125.00 weekly 12. Mariel $12,760.00 weekly 13. Lane $18,550.00 biweekly 14. Stefanie $20,620.00 semi-monthly 15. Celeste $23,375.00 monthly

Complete the table.

Employee Pay Period Pay Per Period Annual Salary 16. Bryan weekly $384.50 17. Mariel biweekly $675.65 18. Lane semi-monthly $450.25 19. Stefanie monthly $1854.95 20. Celeste monthly $984.22


Determine which job pays more and how much more. Job A Job B 21. $350/week $12,500/year 22. $14,520/year $822/month 23. $627 semi-monthly $690 biweekly 24. $8.50/hour (35hr/week) $15,750/year 25. $7.95/hour (40hr/week) $18,425/year 26. $15.25/hour (30hr/week) $17,900/year Solve the following problems. 27. Wesley was offered one job that pays $1450/month and another that pays $17,650/year. Which job pays more per year? How much more? 28. Tina earns $220/week. She is offered another job that pays $15,500/year. How much will her salary increase per year? How much more will she earn per week? 29. Carrie earns a salary of $26,400/year. She works a 35 hour week. What is her hourly wage? 30. Tim earns $11.45/hour for a 40 hour week. How much more will he earn per year if he is promoted to a job that pays an annual salary of $26,850?

Math 11 Unit 6 Review p. 1 of 3

Name: _________________________________ Date: _________________________

Math 11 Unit 6

Review

1. Calculate the gross pay for the following:

a) $7.95/hour for 15 hours

b) $11.50/hour for 37.5 hours

c) $18.70/hour for 40 hours 2. Calculate the gross pay for the following. All hours over 40 are paid at time and a half.

a) $8.80/hour for 42 hours

b) $17.20/hour for 48.5 hours

c) $23.36/hour for 54 hours 3. Calculate the gross pay for the given week. You are paid regular time for the first 8 hours in a day (M – F) and time and a half for all hours over 8. Also, you are paid time and a half for Saturday and Sunday hours. Your regular rate of pay is $13.74.

Mon. Tues. Wed. Thurs. Fri. Sat. Sun.

8 9.5 8 10 11 8 6


4. Your brother drives a taxi. He drove a customer to the airport. The fare was $8.00 and he expects a 15% tip. How much should the customer give him in total? 5. Gene is paid $1.98 for each tie he dry cleans. He dry cleans about 12 ties per hour.

a) How many hours must he work in order to earn $594.00 per week? b) How many ties must he clean to earn this much?

6. If Jenny’s rate of commission is 7%, calculate the amount of commission she earns on sales of $12 700. 7. Calculate the total amount earned if Gus had a salary of $220. per week plus 8% of all sales. Total sales for the week were $7400. 8. Fill in the time card and calculate the total earnings for Jack who works full time at APEX

steel mill. His regular wage is $12.50 per hour. All time over 40 hours is considered time and a half.

Day


Mon. 1:00 5:00 Tues. 8:00 12:00 1:00 8:00 Wed. 1:00 4:30 5:30 10:00 Thurs. 1:00 4:30 5:30 10:00 Fri. 6:00 12:00 5:30 11:00 Sat. 6:00 12:00 1:30 5:15 6:00 12:15 Sun. Total Weekly Hours

Total Earnings


9. Write definitions for the following terms:

gross pay:

net pay:

E.I.:

C.P.P.:

deduction:

10. Roland is a landscape architect earning $4000 per month. His claim code is 7. He has deductions for E.I., C.P.P., federal tax, provincial tax, $338.08 for a pension plan, $29.95 for health insurance, and $58.00 for charity. Use the tables/calculations from the unit to find Roland’s total deductions and net monthly pay. 11. Tell how many pay cheques per year a person will receive if they are paid:

a) monthly _____ b) weekly _____ c) semi-monthly _____ d) bi-weekly _____

12. Consider the following newspaper ads. Which job pays the best yearly salary? Explain.

Park Maintenance Enjoy the outdoors. $250 wk. Apply in person. City Hall.

Short Order Cook 30 hrs/wk. Tues – Sun. $8.75/hr. ph. 382-5616

UNIT - Thom Collegiatethomcollegiate.rbe.sk.ca/sites/thom/files/Unit 6 uploadable.pdf · Math 11 Unit 6 Objectives p. 1 of 1 . B. Consumer Mathematics . Unit 6 Income Objectives •

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