Unit 1 Earning an Income - Ms Threatful's Classes · 2018. 9. 6. · Apprenticeship and Workplace Math 10 Unit 1 – Earning an Income 1 1.1 Identifying Ways of Earning Income Key

Workplace Math 10

Name: ________________________________________________________________________________

Unit 1 – Earning an Income

1.1 Identifying Ways of Earning Income 1.2 Salaries and Contracts 1.3 Hourly Wage 1.4 Overtime 1.5 Commission and Piecework 1.6 Comparing Types of Income 1.7 Calculating Net Income

Apprenticeship and Workplace Math 10 Unit 1 – Earning an Income

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1.1 Identifying Ways of Earning Income

Key Terms

Hourly Wage A fixed payment for each hour of work

Wage and Tips An hourly wage plus varying amounts in tips

Salary

A regular fixed payment for work, usually

expressed as an amount per year but paid regularly.

Commission A payment based on a percentage of the worker’s sales

Royalty A payment for a piece of work that is marketed or sold. The amount is usually

based on a percentage of sales.

Piecework A payment based on the number of items created or completed.

Contract A fixed payment for a job that is for a certain period of time

1.1 Practice

1. Match each job with the payment method.

Job

Video store clerk

Police Officer

Screenplay writer

Tour guide

Fruit picker

Furniture salesperson

Landscape architect

Payment

Salary

Piecework

Hourly wage

Royalty

Hourly wage and tips

Contract

Commission

2. List two jobs you might be interested in. For each job, identify the way you might be paid.

Monthly (÷ 12) Semi-monthly (÷ 24) Weekly (÷ 52) Bi-weekly (÷ 26)


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1.2 Salaries and Contracts Key Terms

Gross Income – the total amount of money you make before deductions

Bonus – an additional payment to a worker as a reward for meeting company goals

Examples 1. John makes $2500 per month at a retail store.

(a) What are his annual earnings? (b) What are his weekly earnings?

2. Marika has a good reputation with children and her employer wants her to come back next year.

Marika earned $3600 during the summer and her employer offers her a 15% signing bonus if she will sign up for next year. If Marika signs up, how much will she get as a signing bonus?

1.2 Practice

1. Sarah designs houses. She is paid by contract from each builder. This year she earned $25

000, $15 200, $19 750, and $31 800 on four contracts. What is her gross income?


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2. Complete the chart. Round your answers to two decimal places.

Name Annual Salary Monthly Earnings Weekly Earnings

Andrea $32 000

Claire $52 850

3. Complete the chart. Round your answers to two decimal places if necessary.

Name Annual Salary Monthly Earnings Weekly Earnings

Bart $2250

Nadia $745

4. Bob is a project manager for a publishing company. His yearly salary is $65 000. This year, he

will also get a bonus that is 2% of his salary. What is Bob’s gross income?

5. Lang is an accountant in Vancouver with an annual salary of $68 200. He gets a 2.4% bonus if

his firm does well. What is the maximum gross income Lang can earn?


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6. Ben is a human resources assistant in Saskatoon, Saskatchewan. Last year his salary was

$48 000, and his gross income was $49 400.

a) Calculate Ben’s bonus.

b) What percentage of Ben’s salary was his bonus?

7. Darla earns $50 every two weeks delivering newspapers. Chris earns $50 twice a month

walking dogs. Who earns more per year and by how much?


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1.3 Hourly Wage Key Terms

Shift Premiums – an additional amount of money for working

outside of regular workday hours or on weekends.

Examples

1. Jesse works as an electrician and earns $24.68/h. If it takes him 15 hours for one job, how much will he earn?

2. Last week, Chi worked 34 hours cutting lawns. His gross income was $329.12. What was his hourly

wage? 3. Antonio is a cashier in a store. His time card for one week is shown below.

a) How many hours did he work?

b) If he earns $15.85 per hour, how much did he earn that week?

c) Antonio earned a shift premium of $1.75/h for working the 7:00 pm - 11:00 pm closing shift

on Thursday. How much did he earn that night?

Why do you think companies pay a shift premium to

workers?


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1.3 Practice

1. Denzel works at a tire manufacturing plant and earns $10.20/h on day shift. When he works

the night shift, he earns a shift premium of $1.15/h. Last month he worked 80 h on day shift and 80 h on night shift. What was his gross income for the month?

2. Complete the chart. Round your answers to two decimal places.

Job Hourly

Wage

Number of hours

worked

Gross Income

Landscaper $9.85/h 40

Dog Groomer $11.25/h 20

Security Guard $15.30/h 12

3. Complete the chart. Round your answers to two decimal places if necessary.

Job

Hourly Wage

Number of hours

worked

Gross Income

Painter 50 $537.50

SPCA Worker 18 $202.50

Dishwasher 27 $247.05

Crossing Guard 12.5 $130.63


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4. Determine the hourly wage for each job listed if shift premiums are paid only on

weekends.

Regular Hourly

Wage

Shift Premium Day of the week Hourly Wage

$9.25/h $0.55/h Saturday

$17.50/h $1.25/h Friday

$21.25/h $2.00/h Sunday

$16.60/h $0.85/h Wednesday

5. Bonnie earns $28.50/h as a welder plus a shift premium of $1.75 for working on

weekends. A summary of her hours is shown. What was Bonnie’s gross income for the

week? Mon Tues Wed Thu Fri Sat Sun

Hours 8 8 8 8 8 12 0

6. Danny earns $55 000/year as a teacher. Jarrod is a plumber making $28.50/h. If Jarrod

works 40 h each week for 50 weeks each year, who has the higher gross income for the

year and by how much?

7. Sara works part time as a waitress. She earns $10/h and makes $50 in tips each week. If

she works 20 h each week, how many weeks will it take her to earn $3000?


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1.4 Overtime Key Terms

Overtime – If you work more than regular number of hours o “Time and a Half” – the hourly wage multiplied by 1.5 o “Double Time” – the hourly wage multiplied by 2

Examples

1. Marcel works for a construction company and earns $15.82/h for a 37.5 hour work week. a) How much did he earn for the week? b) Marcel is paid time and a half for any time he works in excess of 37.5 hours. If he works

42.25 hours during one week, how much will he earn for the week?

1.4 Practice

1. Darcy earns $22.40 per hour as a lathe operator, plus time and a half for hours worked

over 40 hours each week. a) Complete Darcy’s time card:

In Out In Out Hours Worked

Monday 7:00 AM 11:30 AM 12:00 PM 3:30 PM Tuesday 6:59 AM 11:29 AM 12:01 PM 3:31 PM

Wednesday 6:55 AM 11:25 AM 11:59 AM 3:29 PM Thursday 6:57 AM 11:27 AM 12:03 PM 5:03 PM

Friday 6:58 AM 11:28 AM 12:00 PM 6:15 PM Saturday 12:00 PM 4:15 PM Sunday

Total Hours: Regular Hours: Overtime Hours:


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b) What was Darcy’s gross income for the week?

2. Brent has a job with the city parks department earning $18.60/h. If he works more than 40 h in

a week, he earns time and a half. What was his gross income for working 46.5 hours in one

week?

3. Ingrid works as a medical receptionist at a rate of $11.82/h. She regularly works 35 hours per

week, but her clinic wants to increase her work week to 42 h. She agrees to do this if they will

pay her overtime, at double time, for the extra hours. If they agree to pay this amount, what will

her weekly pay be?


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1.5 Commission and Piecework Key Terms

Straight Commission – payment based only on sales made

Base Salary – a fixed amount of money earned in return for work performed

Examples

1. Greg is a tree planter during the summer and he earns his income through piecework. He is paid $2.50 for each seedling he plants. If he plants 45 seedlings in a day, how much will he earn?

2. Mary works as a flower arranger. She is paid $143.75 for making 25 identical flower arrangements

for a wedding. How much was she paid per arrangement? 3. Ming works in a store that sells classic Chinese furniture. Ming works on a commission at a rate of

6.5% of his gross sales. If he sold $9865.00 worth of furniture last week, how much commission did he earn?

4. Olaf earned $416.03 commission on his sales of $9245.00. What was his rate of commission?


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1.5 Practice

1. Determine the amount of commission for each person’s sales.

Salesperson Commission Rate Total Sales Commission Earned

Brock 5% $12 000

Katrina 1.5% $24 050

2. Petra works in a shoe store earning $285 a week plus 3% commission on her sales. Last week

her sales were $4200. What was Petra’s gross income for the week?

3. Art sells cars. He earns a base salary of $1950 per month and 1.5% commission. What was

Art’s gross income last month when his total sales were $125 950?

4. Mario earns 3% straight commission. Brent earns a monthly salary of $3400 and 1%

commission on his sales. If they both sell $245 000 worth of merchandise, who earns the

higher gross monthly income and by how much?

5. Dominic delivers catalogues. He is paid $0.30 for each catalogue he delivers. Last night he

delivered 243 catalogues. How much did Dominic earn?


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6. Jessica prunes fruit trees. Last week she was paid $660 for pruning 240 trees. How much was

Jessica paid for each tree?

7. Jackie is paid $2.00 per basket for picking blueberries. Last year she was paid $1.85 per

basket.

a) How much will she earn this year for 135 baskets?

b) How much more will she earn this year than last year for 135 baskets?


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1.6 Comparing Types of Income 1.6 Practice

1. For 40 hours a week, 50 weeks a year, what hourly wage is equivalent to an annual salary of

$34 000?

2. Mindy is an electrician and Bridget assembles computers.

Mindy earns $24.50/h and a shift premium of $1.50/h for hours worked after 8 pm. Last week she worked 45 h, which included 5 h after 8 pm.

Bridget earns $6.25 for each computer.

How many computers must Bridget assemble in a week to match Mindy’s gross income for the week?

3. Suppose you would like to earn at least $300 a week and you have two part-time job offers.

Job A pays $9.25/h, 35 h a week Job B pays $8.10/h, 20 h a week, plus 5% commission on sales of about $3000/week

Which job would you take? Why would you take that job?


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4. The company that Lars works for installing car stereos has changed ownership. He used to earn $12.20/h for a 40 h week. Now he is paid $35 for each stereo he installs and he averages 15 installations a week. Does this change benefit Lars? Explain.

5. Liza is a bank teller earning an annual salary of $36 000. Sasha works as a legal secretary and is paid $15.40/h and double time for hours over 35 each week. How many hours of overtime must Sasha work each week to earn as much as Liza?


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1.7 Calculating Net Income Key Terms

Net Income (take home pay) – the money you take home after deductions. Standard Government Deductions

Income Tax

15%

($0 - $45,916 per year)

A portion of an employee’s earnings that federal and provincial

governments use to provide services.

Employment Insurance (EI)

1.88%

A fund that provides a source of income to people who lose their

jobs (through no fault of their own) while they look for a new

job.

Canada Pension Plan (CPP)

4.95%

A government fund that provides a monthly pension to workers

when they retire.

Optional Deductions

Company Pension Plan A fund that provides a company pension during retirement, in

addition to CPP.

Company Health Plan A plan for medical expenses not covered by other government

health care plans.

Life Insurance A plan that pays a sum of money to a family member or designated

beneficiary in the case of an employee’s death.

Disability Insurance A plan that provides a source of income when an employee is

injured and unable to work.

Union Dues A deduction made when an employee belongs to a union. Unions

negotiate wages, benefits, and working conditions with employers.

Payroll Savings An option for employees to make a regular contribution to a

savings plan, such as Canada Savings Bonds.

Charitable Donations An option for employees to make a regular donation to a charity.

Examples 1. Kimberly's group life insurance is 1.5% of her salary of $450.00 every two weeks. How much is

deducted from her paycheck for this insurance?


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2. Jagar had a gross income of $785.00. His net income was $625.42. What percentage of his gross pay were his deductions?

3. Alphonso has a gross income of $852.00 per week. His before tax deductions include union dues of

2.5% of his gross income and a company pension plan contribution of 3%. His federal tax rate is 16.2% and his provincial tax rate is 5.4%. He pays 4.95% to the CPP and 1.8% for EI. Calculate his net income.

a) Calculate the amount that will be deducted for union dues and company pension. b) Find his taxable income. c) Calculate the amount deducted from his taxable income due to taxes, CPP, and EI. d) Find his net income.

1.7 Practice

1. Shannon is the manager of a sporting goods store earning $770 weekly. Calculate her

standard deductions using the table on p.15.


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2. Todd earns a weekly salary of $635 as a computer technician. The deductions from his gross income are shown on the right. What is his net income for a week?

3. Kandice earns $19.20/h and is paid time and half for each hour worked over 40 h a week. Last week she worked 43 h. a) What is Kandice’s gross income?

b) Use the chart on p.15 to determine each standard deduction.

c) Kandice also has a payroll savings plan deduction of $20/week. What was her net income for last week?

4. Jen is a dentist earning an annual salary of $135 500. Each month, she pays $2925 in income

tax. What overall income tax rate is Jen paying?


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ANSWERS

Section 1.1

1. a) Video store clerk hourly wage Police Officer Salary Screenplay Writer Royalty

Tour Guide Hourly wage and tips Fruit picker Piecework Furniture salesperson Commission

Landscape Architect Contract 2. Various answers depending on student

Section 1.2 1. $91 750 2.

3.

4. $66 300 5. $69 836.80 6. a) $1400 b) 2.92% 7. Darla, by $100 Section 1.3 1. $1724 2. Landscaper - $394 Dog Groomer - $225 Security Guard - $183.60 3. Painter - $10.75 Animal Shelter Worker - $11.25 Dishwasher - $9.15 Crossing Guard - $10.45 4. $9.80, $17.50, $23.25, $16.60 5. $1503 6. Jarrod’s income is higher, by $2000 7. 12 weeks

Section 1.4 1. a) Total hours – 48.5

Regular hours – 40 Overtime hours – 8.5 b) $1181.60

2. $925.35 3. $579.18

Section 1.5 1. Brock - $600 Katrina - $360.75 2. $411 3. $3839.25 4. Mario, by $1500 5. $72.90 6. $2.75 per tree 7. a) $270 b) $20.25 more Section 1.6 1. $17 an hour 2. 178 computers 3. Job A if want more $ per week and a stable income

Job B if can make a few more sales, but riskier 4. Yes, as long as he installs at least 14 stereos per

week. 5. 5 hours overtime Section 1.7 1. Income tax - $115.50 EI - $14.48 CPP - $38.12

2. $464.32 3. a) $854.40 b) Income Tax - $128.16 EI - $16.06 CPP - $42.29 c) $647.89 4. 25.9%

Andrea $32 000 $2666.67 $615.38

Claire $52 850 $4404.17 $1016.35

Bart $27 000 $2250 $519.23

Nadia $38 740 $3228.33 $745

Documents

Unit 1 Earning an Income - Ms Threatful's Classes · 2018. 9. 6. · Apprenticeship and Workplace Math 10 Unit 1 – Earning an Income 1 1.1 Identifying Ways of Earning Income Key