Planning 10
Understanding Your Pay It is important that you understand the different different types of salaries and pay periods. It is also important that you are able to read and understand a pay stub. The following information information will help you understand. 1. It is important important to unders understand tand the the differ difference ence between between gross income and net income. Gross income income is the hourly wage multiplied by the number of hours worked or the full ‘salary’ that an employee earns this includes commission!. commission!. "et pay is the amount left after all all deductions are taken from the the pay. "et pay is often referred to as ‘take ‘take home pay’. There are #arious forms of payment payment for employment. These include$ banks' Hourly wage % this is the most common form of payment for entry le#el types of wages. &etail stores' restaurants' banks' etc. usually pay entry le#el positions by the hour. % with this form of payment the employee is paid according to the number of Piece Work % ‘pieces’ he(she has completed. )*amples of careers that might pay this way include furniture furniture makers' artists' authors' etc. for work completed. )*amples of contract work work might include moti#ational moti#ational Contract % a lump sum is agreed upon for speakers' a self employed roofer' etc. Commission % employees are paid completely based on a percentage of the employee’s sales. &eal estate agents' most sales people are paid in this fashion. There are #arying types of commission also' these include$ e mployee is paid a straight percentage of what is sold. Straight commission % the employee on a graduated commission scale. +n Graduated Commission % employee is paid based on employee might be paid ,- of sales up to 10'000.00 and then /- of all sales abo#e that amount. salary as well as commission. commission. This is Commission plus Salary % employee is paid a base salary often the form of pay pa y when an employee first enters a sales position. gi#en a Salary % many careers are paid in this manner. The employee is gi#en determined amount of money per year. The salary is then di#ided into payments across across a predetermined number of pay periods. periods.
. Ther Theree are are #ari #ariou ouss type typess of pay schedules or Pay Periods that might be offered. Pay Periods$ payment for work completed can occur in #arious manners. The employer what schedule of payment payment he(she wants. Possible Pay chedules include$ include$
determines
Monthly Pay % the employee is paid at the end of each month' and may recei#e an ad#ance in the middle of the month. Weekly Pay % the employee is paid at the end of each week. Biweekly Pay % the employee is paid at the end of e#ery , weeks. Bimonthly Pay % the employee is paid on the 1/ th of the month and the last day of the month.
4. Benefits and eductions! there are #arious types of benefits and deductions that you will likely ha#e when you begin employment. 2enefits and deductions deductions cost the employer between between - and /0- of an employee’s employee’s pay. pay. There are regular deductions that almost all employees e mployees must pay. These include$ that is "mployment #nsurance $"#% % the employee must pay an amount from each pay che3ue determined by &e#enue 4anada based on the employee’s employee’s salary. salary. )mployers must pay 1.50 to &e#enue 4anada for e#ery dollar that an employee pays. that is Canada Pension Plan $CPP% % the employee must pay an amount from each pay che3ue determined by &e#enue 4anada and is based on the employee’s employee’s salary. salary. The employer must pay 1.00 to &e#enue 4anada for e#ery dollar that an employee pays. federal ta* deducted from each pay che3ue. che3ue. The amount is determined by &ederal 'a( % employees ha#e federal &e#enue 4anada and is based on their salary.
Ms. S. Greene
Planning 10
Pro)incial 'a( % employees ha#e pro#incial ta* deducted from each pay che3ue. The amount is determined by each pro#ince and is based based on the employee’s employee’s salary. salary.
2enefits may also be paid in part by employees and therefore are deducted from their pay che3ues. )mployers usually pay benefits fully or a percentage of them. 2elow is a list of some 2enefits that might be offered$ percentage of the cost for this benefit. +n Medical* dental* e(tended medical % the employee pays all or a percentage employee can choose not to ha#e these benefits. "mployee &itness Programs % many employers offer this benefit in order to help keep their e mployees healthy both physically physically and mentally. The employer may opt to pay the full amount or may subsidi6e the amount for the employee. e mployers offer financial aid to their employees who wish to Professional e)elopment Su+sidies % many employers further their knowledge and skills skills through #arious educational educational endea#ours. ome employers will pay 100- of this cost' others may offer to pay lower percentages. insurance for their employees' employees' again they may pay 100- of the the ,ife #nsurance 7 some employers pay life insurance cost or a lower percentage. percentage. )mployees may opt out of this this benefit. days. )*ceptions may occur howe#er' howe#er' for Sick days % most employers pro#ide employees with paid sick days. e*ample if the employee is on contract or part7time they may not be entitled to paid sick days. pay. The format in which it occurs may differ howe#er Holiday Pay % all employees are entitled to holiday pay. from 8ob to 8ob. ome employers simply pay their employees employees 5- of of their pay. pay. 9ther employers employers will gi#e gi#e employees , weeks or more in holidays. This is an important topic to discuss when negotiating negotiating a salary. salary. +ll employees are entitled to a minimum of 5- of their annual pay in holiday pay. This percentage increases as employment employment with the same company remains constant across se#eral years.
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those who are self7employed self7employed do not pay or recei#e recei#e the same same benefits' howe#er they are still responsible for paying deductions directly to &e#enue 4anada 4anadian Ta*es! Ta*es! and must also pay Pro#incial medical costs each month.
means the employee recei#es recei#es time and a half and and in some situations dou+le time /)ertime Pay$ 9#ertime pay means for the hours worked in o#ertime. o#ertime. 9nly employees paid an hourly wage recei#e o#ertime o#ertime 9T! )mployees are entitled to e*tra pay under the following f ollowing circumstances$ circumstances$
The employee is being paid based on an hourly wage The employee works more than 50 hours in a week The employee works on statutory holidays such as$ "ew :ears :ears ;ay Good =riday 24 ;ay Thanksgi#ing ;a ;ay 4hristmas ;ay
Ms. S. Greene
Planning 10
"ame$ >>>>>>>>>>>>>>>>>>>
0nswer the following 1uestions* +e sure to show your work! 1. ?oe works for afeway. afeway. @e recei#es recei#es an hourly hourly wage of 1/. ?oe is paid weekly and the the money is automatically deposited into his his bank account each =riday. =riday. ?oe works 5 hours hours in 1 week. @ow much will his his gross pay beA. )*plain your answer by showing each step.
,. >>>>>>>>>>>>>>>>>>>>>>>> >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> >>>>>>>>>>> . &ick is is a high high school school teache teacher. r. @e makes makes //'000 //'000 per year. year. Bhat type of of pay does does he recei#eA recei#eA 2222222222222222222222222 2222222222222222222222222222222222222 222222222222
commission. @e recei#es a 0- commission on the first 4. @arry is an insurance salesperson that is on straight commission. year’s premium of each life life insurance policy he sells. sells. @arry sells three life insurance insurance policies in one one week. If the premiums for the first year year are /0.00' 500.00 and 550.00' 550.00' what will @arry’s @arry’s gross pay beA marks!
/. )ric works works for a machine machine company company that that pays him 11- on the first first /000 /000 sold' sold' ,- on the ne*t ne*t 1/'000 sold and - on anything o#er ,0'000. ,0'000. Bhat would his gross pay be if he sold 5/'000 worth of machineryA
Ms. S. Greene
Planning 10
C. Paul’s gross income income is 5C5 per per week. @is deductions deductions include union union dues of D.E0' D.E0' dental plan of ,.F/' ta*es ta*es are FD./' 4PP is 11.C0 11.C0 and )I is 1.5C. Bhat is his weekly net incomeA
F. ?oe is paid ,000 ,000 bi7wee bi7weekly kly.. 4ris is is paid paid 5000 5000 per month. month. Bho has has the higher higher income income and whyA whyA
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E.
10. Bhat might be be a benefit of an hourly wage wage compared to salary salary pay. >>>>>>>>>>>>>>>>>>>>>>>>> >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> >>>>>>>>>>>>>>>>>>>>>>>>> >>>>>>>>>>>>>>>>>>>>>>>>>> >>>>>>>>>>>>>>>>>>>>>>>>>> >>>>>>>>>>>>>>>>>>>>>>>>>> >>>>>>>>>>>>>
=ormati#e +ssessment$
Ms. S. Greene
(,0 marks
