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CHAPTER 2:
EARNINGAN
INCOME
Math 10-3

INTRODUCTION,VOCABULARY,WAGES
AND SALARIES
o Who has had a job before?
o How did you get paid?
o Did you get paid overtime?
o How did they determine how many hours they
worked?
o Did they have any deductions?Etc.

IN ALBERTA,THE CURRENT MINIMUM WAGE IS
$15.00 PER HOUR.
o Minimum wage is the minimum amount a
worker MUST be paid an hour,as set out by the
Provincial Government.
o The minimum wage in BC is $17.40/hour.The
minimum wage in Sask.is $15.00.The min.
wage in Ontario is $17.20/hour.
o why there might be differences in minimum wage
across Canada?

WHAT IS THE DIFFERENCE BETWEEN A SALARY
AND A WAGE?
o Salary - paid a fixed amount every pay
period. This amount is determined usually in a
contract which is signed before employment
starts.
o Advantages-paid the same amount every pay
period,regardless of hours worked/holidays etc.
o Disadvantage-not paid for any extra work you
might do.

o Wage - paid a fixed amount PER HOUR
worked during a certain pay period.
o Advantages-paid for any extra hours you might
work.Usually paid more per hour during certain
times (for example,working on holidays,
Sundays,evenings etc.)
o Disadvantages-if you don't work,you don't get
paid (for example,if you miss a day of work,or
you work fewer hours in a week than normal).

o Gross Pay-the total amount of money earned
in a pay period.AKA gross earnings.This is the
amount you make BEFORE deductions.

A PAY STATEMENT IS A FORM AN
EMPLOYER WILL GIVE YOU THAT SHOWS
EARNINGS FOR A DEFINED PAY PERIOD.
o A pay period could be weekly,bi-weekly,
monthly,etc.
o*weekly-once a week (paid 52 times per year)
o*bi-weekly-every two weeks (paid 26
times/year)
o*monthly-once a month (paid 12 times/year)
o*semi-monthly-twice a month (paid 24
times/year)
o*annually-one year (paid once a year)

*HOW DO WE DETERMINE THE MONTHLY,SEMI-
MONTHLY,BI-WEEKLY AND WEEKLY PAY FOR A
SALARY?*
Ex.Brendan works at the Edmonton Journal.His
annual salary is $35650.
o Determine the following scenarios:
o 12 pay periods per year:
$35650/12=$2970.83 / month
o Paid Semi-Monthly?
o 24 pay periods per year:$35650124=$1485.42
twice a month
o If Brendan is paid monthly,how much will he make

o Paid Bi-Weekly?
o 26 pay periods per year:$35650/26=$1371.15
every two weeks
o Paid Weekly?
o 52 pay period per year:$35650/52 =$685.58

VНАТ АРЕ ТНЕ ADVANTAGES AND
DISаDУАМТАСЕЯ Он ЕАСН РАУ
РЕЕЮОD?

*HOW DO WE DETERMINE THE GROSS PAY
FOR WAGES?
o EX: Morgan makes minimum wage.He works 35
hours one week.How much will his gross pay be for
that week?
o*Multiply the number of hours worked by the wage
to get gross pay!*
o 35 hours x$9.40/hour =$329.00
o*Always round MONEY to two decimal places!!!*

Employee Name:Christine
Thomas
Company:
McDonalds
Pay Period
Begin:
09/18/2010
Pay Period
End:09/24/2010
GENERAL
Employee ID:
555777
Job Title:
Cashier
Address:2020
Kingfisher Blvd
Pay Rate:9.25/h
HOURS AND EARNINGS
Descri
ption
Rate Hours Gross
Earnin
gs
Regular 9.25/h 25 $231.25
o How often does Christine
get paid?Weekly(24 -18
=6 days =1 week)
o If Christine gets paid the
same amount every week,
how much will she make
gross in a month?
$231.25x4
weeks/month =$925.00
o How much will she make
in a year? $925.00 x 12
months/year =$11100

Emp l oyee Name: Robert Cooper
Employer:
ATCO Gas
PP Begin:
09/4/2010
PP End:
09/17/2010
Employee ID:
1234
Job
Description:
Technician
Pay Rate:15.45/h*determine
using gross earnings and hours
worked
Descri
ption
Rate Hours
Gross
Earnin
gs
Regular 15.45/h 32 540.75
Sunday
(rate +
1.00)
16.45/h 8 131.60
Total Gross Earnings 672.05
o How often does Rob get
paid? Bi-Weekly(17-4
=13 days =2 weeks)
o If Rob gets paid the
same amount every pay
period,how much will
he make in a month?
2x672.05=$1344.10
o If Rob gets paid the
same amount every
month,how much will
he make gross per year?
12x1344.10=$16
129.20

ASSIGNMENT:SALARIESANDWAGES.DOC

Dау 2: НоиВз
VОВКЕD -
СомреТТма Ттмв
Саврв

HANDОИТ:
ALBERTA.EMPLOYMENT.STANDARDS

FULL TIME VS PART TIME
o Full Time -usually considered to be between
35-44 hours per week.Typically,full time
results in 8 hour shifts per day,5 days a week.
o Part Time -usually considered to be less than
35 hours a week.Typically,part time results in
shifts less than 8 hours OR fewer days are
worked per week.
o Shift -the amount of time you work.

GETTING PAID WITH A WAGE-HOW ARE
THE HOURS YOU WORK TRACKED?
o Punch cards-at the start and end of every shift,you
insert a card into a machine that will record the date
and time.This card is then later used to calculate the
number of hours worked during a pay period.
o Time Card (Personal) -you may have to manually
record the time you start and end each shift.Sometimes
this is called"logged hours".
o Time Card (Pay Roll) -you may work for a company
where a person logs your hours for you.It will be your
responsibility to inform them of any extra hours you
work,or any shifts you miss.

24 HOUR TIME -MOST JOBS WILL USE 24
HOUR(INSTEAD OF 12 HOUR)TIME.To
DETERMINE THE TIME,SUBTRACT 12.
o Remember,in 12 hour time,the morning is am,
and the afternoon/evening is pm
o Ex.What time is 13:05?13-12 =1:05 pm
o What time is 22:45?22-12 =10:45 pm
o What time is 02:50?=2:50 am

hours have you worked?
o 1st add minutes to the start time to match
the
minutes of the end time
o 9:30+20 minutes =9:50
o 2nd subtract the hours:14-9=5 hours
o 3rd combine hours and minutes =5 hours
+20
minutes.
HOW DO WE DETERMINE THE NUMBER
OF
HOURS WORKED?
o For example,you work from 9:30-14:50.How many

o Employers don't usually pay for every minute
of work.Typically you will get paid for every
quarter hour you work.Round to the nearest
quarter (0,15,30,45)
o 20 minutes-closest to 15 minutes.
o What part of an hour is 15 minutes?
o x/1=15/60 =0.25
o 4th Add hours and parts of an hour together:
5+0.25=5.25 hours.

.
TIME CARD-Telu s Communication s
Employee Number:5872 Approval:
Employee Name:Bill Ngo
For Week Ending:19/11/10
Date Start (IN) End(OUT) Total Hours
15/11/10 09:03 12:05
3 hours,2minutes =3 hours
16/11/10 16:02 21:06
5hrs,4 mins,=5 hours
17/11/10 08:58 12:00
3 hrs,2 mins =3hours
18/11/10 16:30 22:01
5 hrs,31 mins =5 hours and 30 minutes =5.5 hours
19/11/10 08:32 12:00
3 hours,28 mins=3 hrs 30 mins =3.5 hours
Total Hours Worked during
P.P
Ех: СомР?ЕТЕ ТНЕ POLOWING
TIМЕ CARD:
20
hours

IF BILL MAKES $10.25 PER HOUR,HOW MUCH
WILL HE MAKE GROSS FOR THIS PAY PERIOD?
o 20 x10.25 =$205

Daу 3: ОтнеВ WAYS TO EARN -
PIECEWORK AND COMMISSION

SALARY AND WAGE AREN'T THE ONLY WAYS TO
EARN AN INCOME.OTHER WAYS INCLUDE:
o Self employment-a person who works for
themselves rather than for an employer.
o Piecework-when someone is paid a set rate for an
amount produced
o Commission-an amount (usually a percentage)
paid to someone for a business transaction
o Contract-a legal agreement that outlines terms,
conditions and payments for work to be done

o Brainstorm as a class examples of occupations
for each vocabulary words
above.Also,brainstorm advantages and
disadvantages of being self
employed.

PIECEWORK
o Ex.Michelle is an
Artisan-a craftsperson
who specializes in
decorative arts.She
makes pottery bowls.
She sells large bowls for
$45.00 and medium
bowls for $35.00.One
weekend at a farmers
market she sells 11
medium and 8 large
bowls.How much does
she make?
o*Multiply price by
quantity,then add
totals together*
$45x8=$360
$35x 11=$365
Total:$745

NUMBER IN QUESTION.
o Ex.Lindsay works at
a car dealership.She
gets 3%commission
on all sales.Last
month she sold a total
of $44375.How much
will her gross
earnings be?
COMMISSION
REVIEW:PERCENT MEANS OUT OF 100!To FIND THE
PERCENT OF NUMBERS,CHANGE THE PERCENT TO A
DECIMAL,AND THEN MULTIPLY THIS DECIMAL BY THE
o 1st change %to a
decimal
o 3%=3/100 =0.03
o 2nd multiply decimal
by total sales
o 0.03x 44375 =$1
331.25

o 1stAdd up his sales:
o 299450+380200
=$
679650
o 2nd change %to a
decimal
o 0.2%=0.2/100 =0.002
o 3rd multiply decimal
by his sales.
o 0.002x 679650 =$1
359.30
o Ex.Dan works as a
real estate agent.He
gets 0.2 %commission
on the sale price of
any house he sells.
Last month he sold 2
houses:$299450,and
$380200.How much
will his gross earnings
be?

o 1st find out his hourly
wage amount
o $8.80/h x 36 hours =
$316.80
o 2nd change %to a
decimal,and multiply
by his tips
o 75%=75/100 =0.75
0.75x155=$116.25
o 3rd add his wage and
tips together to get total
o $316.80+$116.25 =
$433.05
o Ex.Carl works at The
Keg restaurant.He
makes $8.80/h plus he
gets to keep 75%of his
tips.If one week he
works 36 hours and
makes $155 in tips,
what will his gross
earnings be?

Amount Option 1
Gross
Earnings
Option 2
Gross
Earnings
$0 $500 $0
$5000 $600 $300
$10000 $700 $600
$15000 $800 $900
$20000 $900 $1200
o Base salary of $500
plus 2%of all sales
o Straight commission
of 6%
o Determine Andrew's
gross earnings for
both options based on
the following sales:
EX.ANDREW STARTS A NEW JOB SELLING
APPLE COMPUTERS.THE COMPANY
OFFERS
HIM THE FOLLOWING PAY
OPTIONS:

o When is option 1 a o Which would you
better choice? choose?
o When is option 2
a better choice?

Daу
4:Ехтва
VACATION,
РАу:
BoNug
ОуевТТ
МЕ,

HANDOUT ALBERTA.STANDARDS.OVERTIME
TO STUDENTS.

OVERTIME INCOME CAN BE CALCULATED
EASILY.
o 1st Determine the number of over time hours
worked
o 2nd multiply this by the overtime rate (time-and-
a-half=x1.5,double time =x2)and current
wage.
o 3rd add overtime to regular work hours.

o Regular Pay:40 x
9.25/hr=$370
o Overtime Pay:8x 1.5
x 9.25=$111
o Total Gross:370+111
=$481
o Ex.Rebecca in one
week works 40 hours,
plus 8 hours over
time.She makes
$9.25/hr plus time and
a half for overtime.
How much will she
make gross?

o If you have a service industry job (retail,
restaurant,fast food,etc.)you will likely have to
work on holidays.See handout for more info.You
will likely get paid at least time-and-a-half for all
hours worked on a holiday.

o Regular:8+6+4=18
hours x8.95/hr =
$161.10
o Holiday Monday =5
hours x1.5x8.95/hr=
$67.13
o Gross Pay:161.10+
67.13 =$228.23
o Ex.Trent works at
Safeway.On
Thanksgiving Monday
he works 5 hours,
Tuesday 8 hours,
Thursday 6 hours and
Friday 4 hours.If
Trent makes $8.95/h
regular,how much
will his gross pay be
for the week?

o Some service industry jobs will give
you"vacation pay”instead of paid vacation
time;this will likely be a percentage of your
yearly gross pay that will work out to be the
same as two weeks of pay.
This will be either paid out to you in a lump sum
annually or on every pay check.If you take time
off,you will not be paid while you are away.

o 1st determine her weekly gross
pay:
o 10.50/hrx 35=$367.50
o 2nd determine her annual gross
pay
o $367.50 x 52 weeks/year =$19
110
o 3rd find her vacation pay
*remember to change the %to a
decimal!
o 4%=4/100 =0.04
o 0.04x19110=$764.40
o If Sarah gets her vacation pay
every pay period,how much
will this be?
o 764.40/52 weeks/year =
$14.70 per weekly pay
period
o Ex.Sarah gets vacation pay as
4%of her gross income paid
annually in January.If she
makes $10.50/hr for a 35 hour
work week,how much will she
make vacation pay?

ASSIGNMENТ: ОУЕРТ?МЕ AND
НОШПDАУРАУ.DОС

DAY 5:DEDUCTIONS-UNION
DUES,HEALTH PLANS,
CHARlTABLE DEDUCTIONS ЕТС.

o Gross Income/Pay-income earned before
deductions
o Net Income/Pay-Income received after
deductions(your “take home”pay)
o Before taxes are calculated on gross pay,there
are certain“before-tax”or“tax exempt”
deductions.
o These include:
o Union dues,RRSP (registered retirement savings
plan),charitable donations and pension

1st determine here gross
annual income:$650/
week x 52 weeks =$33800
2nd determine her annual
union dues $14.10/week x
52 weeks =$733.20
3rd determine the %of her
annual gross income that
she pays for union dues:
*remember,percent is part
of a whole*
$733.20/$33800 =
0.0216..
0.0216…x100 =2.2 %of
her gross income is spent
on union dues.
o Ex.Lilly works as a
receptionist.She makes
$650 a week.Her union
dues are $14.10 per pay
check.What percent of
Lilly's gross pay does
she pay in union dues?
o
o
o
o
o
o

o In addition to these deductions,many people pay
amounts from their gross pay for a wide range of
benefits and programs such as dental plans
and savings plans.
o Many employers also offer lifestyle benefits.
Such as discounts on merchandise,services,or
bonus items like movie tickets etc.

o Ex.You have a 16-week contract at Marmot
Basin in Jasper,where you will be working
between 15 hours a week.Your employer offers
you a choice of
o $10.75/hr
or
o $8.80/hr plus a weekday season pass that has a
value of $680.

o How much will you
make for the first
choice?
o $10.75/hrx 240 hrs =
$2580
o How many hours total
will you work during
the 16-week contract?
o 16 week x15 hours
/week =240 hours

o $8.80/hr x 240 hrs =
$2112 PLUS a
$680 season pass.
o How much will you
make for the second
choice?
o Which would you
choose?Why?

Employee Name:Lilo Stitch
Company:
West 49
Pay Period Begin:09/24/2010
Pay Period End:10/01/2010
Employee ID:6262 Job Title:Sales Associate
Address Pay Rate:10.50/h
Description Rate Hours
Regular 10.50/h 30
Before Tax Deductions Amount
Union Dues 9.75
RRSP 20.50
TOTAL BEFORE TAX DEUDCTIONS:
Benefits Amount
Extended Health Care 15.10
Dental 9.70
TOTAL BENEFIT DEDUCTIONS:
TOTAL DEDUCTI ONS:
NET PAY:

Dау 7: СРР, EI AND INCOМЕ
ТАХ

о * Remember: Taxable Income = Your incom
e, АЕТЕВ DЕDUСТIONS is taxed by both the
federal and provincial governments.
о *МОТЕ: Taхable income is
СВОЭЗ ТМСОМЕ minus any tax exempt
deductions such as
pension, RRSP, union dues etc.

o Canada Pension Plan(CPP)-Provides
income for workers after they retire.Every
employee between 18-65 must pay into it.
o To estimate CPPdeductions,use
4.95%of your earnings up to a
max.deduction of
$2,163.15

o Employment Insurance (EI)-A fund that
employees pay into to insure themselves against
being unemployed.To estimate,use 1.73%of
your earnings (up to earnings of $43200).Your
employer usually pays 1.4 times your
contribution into the fund.
o THE MAXIMUM contribution amount for
the employee is $747.36

Taxable Income ($) Federal Tax Rate
0 to 31677.00 16%
31677.01 to 63354.00 22%
63354.01 to 103000.00 26%
Тне FЕDЕRАL СОУЕВММЕМТ
ТАХЕS УОИВ
ТМСОМЕ АТ DЕЕЕВЕАТ РАТЕЗ:

o Provincial tax rates vary from province to
province.…Alberta is currently 10%

o Go through the following example with the students
on an over-head:
o Ex.Simon earns a biweekly salary of $1152.
o a. What is Simon's gross yearly salary?
o Biweekly =26 times paid per year
o $1152x 26 =$29952

о b. How much will Simon pay in CPP and EI each
year?
э СРР —4.95% o{ gross earnings *change to a
decimal!* 4.95% — 0.0495
о $29 952 х 0.0495 = 81 482.62
о EI = 1.73% ofgross earnings *change to a
decimal!* 1.73% - 0.0173
о $ 29 952 х 0.0173 = $518.17

o d. How much Federal tax does Simon pay?
o$29952→Simon is in the first range (16%)
*change to a decimal!*=0.16
o $29952x0.16=$4792.32

o e. How much provincial tax does Simon pay?
o Alberta Income Tax rate is 10%*change to a
decimal!*=0.10
o $29952x0.10 =$2995.20

o f. Determine Simon's total year deductions
o $1482.62+$518.17+$4792.32+$2995.20=
$9 788.31

o g. How much does Simon earn a year net?
o $29952-$9788.31=$20163.69

o h. What is Simon's biweekly take home pay?
o*biweekly=26 times paid per year!*
o $20163.69/26=$775.53

o Graphs are a visual way to represent data.
o A circle graph is divided into pieces to represent
part of 100%.An entire circle graph should add
up to 100%,

o For example:
o 50%of people prefer coke
o 25%prefer Pepsi
o 15%prefer sprite
o And 10%prefer Root
Beer.
o Draw a graph to
represent this →
o*Notice that e of the
circle is represented by
coke(50%!)

Pepsi (25%)
coke(50%)
Sprite/(15%)
R.B.(10%)

IF YOU POLLED 325 PEOPLE,HOW MANY
WOULD YOU EXPECT TO PREFER COKE?
o 50%=0.50 325x0.50=162.5 people
o SO about 162 people (we cannot have half a
person!)

A BAR GRAPH REPRESENTS DATAWITH BARS:
Students Taking Bus
5th Grade 6th Grade 7th Grade 8th Grade
□ Students

o About how many students take the bus in 5th
grade?Go to the top of the 5th grade bar,and look
to the left →about 80 students.
o To construct a bar graph,create an appropriate
scale on the left-hand side (the up and down or Y-
axis)and a scale on the bottom (the left to right
or X-axis).

ASSIGNMENT:
SELFEMPLOYMENTPROJECT.DOC

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