Download UNIT 2: PERSONAL FINANCE Introduction

Grade 10 Essential Math
Personal Finance
UNIT 2: PERSONAL FINANCE
Introduction
In this unit, you will learn to calculate your gross earnings for when you start a job. There are
many methods of being paid for your work, many of which will be examined in this unit.
Some jobs require workers to “punch” a time card, or more commonly scan the bar code on their
name tags. The bar code machine records exactly when the employees actually start work each
day, and the length of time they are on the job. You will use time cards to calculate gross pay.
Methods of Earning Income
The pay that people receive for working is determined a number of ways. You can be paid on an
hourly rate (a wage). Some people earn a salary, which is a set amount of money regardless of
how many hours they work. People can earn money by working piecework; they earn money
based on how much they can produce in a day. Finally, people can also earn money by working
on commission which is a certain percentage of what they sell.
Some examples of jobs that use these different methods to pay employees are:
 a day-care worker is paid an hourly wage
 a member of parliament is paid a salary
 a factory worker could be paid by piecework
 a car salesman may work on commission
Income
Various methods of earning income include hourly wages, salary, contract, commission, salary
plus commission, and piecework. Your total income is called gross pay.
Assessment:
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Learning Activity 2.1: Wages
Learning Activity 2.2: Overtime Pay
o Lesson 1 Assignment: Gross Pay and Overtime Pay
Learning Activity 2.3: Commission
Learning Activity 2.4: Piecework and Contract
o Lesson 2 Assignment: Alternative Ways to Earn an Income
Learning Activity 2.5: Time Cards
Learning Activity: 2.6 Late Penalties
o Lesson 3 Assignment: Time Cards and Penalties
Lesson 4 Assignment: Additional Earnings
Lesson 5 Assignment: Changes in Income
Lesson 6 Assignment: Net Income
Personal Finance Project
Test: Unit 2 Personal Finance
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Grade 10 Essential Math
Personal Finance
LESSON 1: GROSS INCOME
Lesson Introduction
All of us have to work for a living. Depending on your career choices, you can make money in a
variety of ways. This lesson examines the various methods of earning an income.
Wages
Many students find part-time work while they finish school. This provides some income to pay
for entertainment or personal items like clothing and cell phone usage. Others work to save
money to go on to university or college after graduation from Grade 12. Most commonly,
students are paid an hourly wage. The more hours worked, the more income earned. Typically
these jobs are found in retail or food service.
Note: If you are paid an hourly rate and you work over your regular number of hours, you may
get paid overtime. Some companies pay their employees time and a half (1.5) for hours that are
over their regular time, others may get double (2) time.
Income is how much money you earn. Your gross income is what you earn before deductions.
Your net income is what you get after deductions (often called your ‘take home pay’).
Examples:
Sue was hired as an office clerk and is paid and annual salary of $34,756.
a. What is her bi-weekly pay?
b. What is her monthly pay?
Solution:
Recall: Biweekly means you get paid every two weeks. There are 26 bi-weekly pay periods in a
year.
Weekly means you get paid each week, there are 52 weeks in a year.
$34 756
a. 𝑏𝑖 − 𝑤𝑒𝑒𝑒𝑘𝑙𝑦 𝑝𝑎𝑦 = 26 = $1 336.77
b. 𝑚𝑜𝑛𝑡ℎ𝑙𝑦 =
c. 𝑤𝑒𝑒𝑘𝑙𝑦 =
$34 7560
12
$34 756
52
= $2896.33
= $668.38
Example:
Carlos works as a nurse, averaging 38.75 hours per week. He is paid $33.50 per hour. Find his
gross pay.
Solution:
𝐺𝑟𝑜𝑠𝑠 𝑃𝑎𝑦 = (𝑟𝑎𝑡𝑒 𝑝𝑒𝑟 ℎ𝑜𝑢𝑟)(𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 ℎ𝑜𝑢𝑟𝑠)
𝑔𝑟𝑜𝑠𝑠 𝑝𝑎𝑦 = $33.50 𝑥 38.75 = $1298.13
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Grade 10 Essential Math
Personal Finance
Example:
You work at a local clothing retail store and are paid $8.50 an hour. If your hours for this week
are: M – 5, T – 4, W – 4.5, T – 3.5 F – 3.5, what is your gross pay for the week?
Solution:
𝑡𝑜𝑡𝑎𝑙 ℎ𝑜𝑢𝑟𝑠 = 5 + 4 + 4.5 + 3.5 + 3.5 = 20.5
𝐺𝑟𝑜𝑠𝑠 𝑃𝑎𝑦 = (𝑟𝑎𝑡𝑒 𝑝𝑒𝑟 ℎ𝑜𝑢𝑟)(𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 ℎ𝑜𝑢𝑟𝑠)
𝑔𝑟𝑜𝑠𝑠 𝑝𝑎𝑦 = $8.50 𝑥 20.5 = $174.25
Learning Activity 2.1: Wages
1. Rachel works 40 hours a week as a journeyman printer. She earns $12.45 an hour, what are
her weekly gross earnings? What is her annual salary (52 weeks in a year)?
2. Last year, Ryan earned $45,183.46 working at a high end salon. What was his monthly
income?
3. Lotta Selling works at Cornwall Furniture. She is paid a straight hourly wage of $12.42.
a. What is her weekly income if she works 35 hours?
b. What is her monthly income (hint: change to annual income then change to monthly)?
4. Mr. McMichael teaches history at the local high school. His annual salary is $68,350.00.
Find his weekly gross pay.
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Grade 10 Essential Math
Personal Finance
Overtime After a 40-Hour Work Week
Perhaps the most common policy is the 40-hour work week. Employees will be paid regular pay
for the first 40 hours of work in a week. Any hours worked beyond the 40 hours is considered as
overtime, and is paid at time and a half.
Example:
You are paid $9.75 an hour and time and a half for any hours worked over 40 hours. Calculate
your last week’s wages from the following time card for last week.
Monday
7
Tuesday
9
Wednesday
9
Thursday
10
Friday
6
Saturday
4
Solution:
𝑡𝑜𝑡𝑎𝑙 ℎ𝑜𝑢𝑟𝑠 = 7 + 9 + 9 + 10 + 6 + 4 = 45
𝑅𝑒𝑔𝑢𝑙𝑎𝑟 ℎ𝑜𝑢𝑟𝑠 = 40
𝑅𝑒𝑔𝑢𝑙𝑎𝑟 𝑅𝑎𝑡𝑒 𝑝𝑒𝑟 𝐻𝑜𝑢𝑟 = $9.75
𝑅𝑒𝑔𝑢𝑙𝑎𝑟 𝑃𝑎𝑦 = (𝑅𝑒𝑔 𝑟𝑎𝑡𝑒 𝑝𝑒𝑟 ℎ𝑜𝑢𝑟)(𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 ℎ𝑜𝑢𝑟𝑠)
𝑅𝑒𝑔𝑢𝑙𝑎𝑟 𝑃𝑎𝑦 = $9.75 𝑥 40ℎ𝑟𝑠 = $390
𝑂𝑣𝑒𝑟𝑡𝑖𝑚𝑒 ℎ𝑜𝑢𝑟𝑠 = 5
𝑂𝑣𝑒𝑟𝑡𝑖𝑚𝑒 𝑅𝑎𝑡𝑒 𝑝𝑒𝑟 𝐻𝑜𝑢𝑟 = $9.75 𝑥 1.5 = $14.63
𝑂𝑇 𝑃𝑎𝑦 = (𝑂𝑇 𝑟𝑎𝑡𝑒 𝑝𝑒𝑟 ℎ𝑜𝑢𝑟)(𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑂𝑇 ℎ𝑜𝑢𝑟𝑠)
𝑂𝑣𝑒𝑟𝑡𝑖𝑚𝑒 𝑃𝑎𝑦 = $14.63 𝑥 5 = $73.15
𝐺𝑟𝑜𝑠𝑠 𝑃𝑎𝑦 = $390 + $73.15 = $463.15
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Grade 10 Essential Math
Personal Finance
Example:
Your workplace demands that you put in many hours, and you are paid $10.25 per hour. But
your employer will pay you time and a half for any hours over 40 in a week, and double time for
any hours worked on Sunday. Here is a record of the hours you worked each day. Find your
week’s gross pay.
Monday
6
Tuesday
10
Wednesday
8
Thursday
8
Friday
9
Saturday
4
Sunday
4
Solution:
𝑡𝑜𝑡𝑎𝑙 ℎ𝑜𝑢𝑟𝑠 = 6 + 10 + 8 + 8 + 9 + 4 = 45
𝑆𝑢𝑛𝑑𝑎𝑦 𝐻𝑜𝑢𝑟𝑠 = 4
𝑅𝑒𝑔𝑢𝑙𝑎𝑟 ℎ𝑜𝑢𝑟𝑠 = 40
𝑅𝑒𝑔𝑢𝑙𝑎𝑟 𝑅𝑎𝑡𝑒 𝑝𝑒𝑟 𝐻𝑜𝑢𝑟 = $10.25
𝑅𝑒𝑔𝑢𝑙𝑎𝑟 𝑃𝑎𝑦 = (𝑅𝑒𝑔 𝑟𝑎𝑡𝑒 𝑝𝑒𝑟 ℎ𝑜𝑢𝑟)(𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 ℎ𝑜𝑢𝑟𝑠)
𝑅𝑒𝑔𝑢𝑙𝑎𝑟 𝑃𝑎𝑦 = $10.25 𝑥 40ℎ𝑟𝑠 = $410
𝑂𝑣𝑒𝑟𝑡𝑖𝑚𝑒 ℎ𝑜𝑢𝑟𝑠 = 5
𝑂𝑣𝑒𝑟𝑡𝑖𝑚𝑒 𝑅𝑎𝑡𝑒 𝑝𝑒𝑟 𝐻𝑜𝑢𝑟 = $10.25 𝑥 1.5 = $15.38
𝑂𝑇 𝑃𝑎𝑦 = (𝑂𝑇 𝑟𝑎𝑡𝑒 𝑝𝑒𝑟 ℎ𝑜𝑢𝑟)(𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑂𝑇 ℎ𝑜𝑢𝑟𝑠)
𝑂𝑣𝑒𝑟𝑡𝑖𝑚𝑒 𝑃𝑎𝑦 = $15.38 𝑥 5 = $76.90
𝑆𝑢𝑛𝑑𝑎𝑦 𝑅𝑎𝑡𝑒 𝑝𝑒𝑟 ℎ𝑜𝑢𝑟 = $10.25 𝑥 2 = $20.50
𝑆𝑢𝑛𝑑𝑎𝑦 𝑃𝑎𝑦 = $20.50 𝑥 4 = $82
𝐺𝑟𝑜𝑠𝑠 𝑃𝑎𝑦 = $410 + $76.90 + $82 = $568.90
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Grade 10 Essential Math
Personal Finance
Example:
Your employer pays overtime on any time worked over 8 hours per day, and on any hours
worked on Saturday. Your regular wage is $9.85 per hour. Calculate your gross pay given the
following schedule.
Monday
9.25
Tuesday
8
Wednesday
10
Thursday
5
Friday
5
Saturday
3
Solution:
𝑅𝑒𝑔𝑢𝑙𝑎𝑟 ℎ𝑜𝑢𝑟𝑠 = 8 + 8 + 8 + 5 + 5 = 34
𝑅𝑒𝑔𝑢𝑙𝑎𝑟 𝑃𝑎𝑦 = (𝑅𝑒𝑔 𝑟𝑎𝑡𝑒 𝑝𝑒𝑟 ℎ𝑜𝑢𝑟)(𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 ℎ𝑜𝑢𝑟𝑠)
𝑅𝑒𝑔𝑢𝑙𝑎𝑟 𝑃𝑎𝑦 = $9.85 𝑥 34 = $334.90
𝑂𝑣𝑒𝑟𝑡𝑖𝑚𝑒 𝐻𝑜𝑢𝑟𝑠 = 1.25 + 2 + 3 = 6.25
𝑂𝑣𝑒𝑟𝑡𝑖𝑚𝑒 𝑅𝑎𝑡𝑒 𝑝𝑒𝑟 𝐻𝑜𝑢𝑟 = $9.85 𝑥 1.5 = $14.78
𝑂𝑇 𝑃𝑎𝑦 = (𝑂𝑇 𝑟𝑎𝑡𝑒 𝑝𝑒𝑟 ℎ𝑜𝑢𝑟)(𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑂𝑇 ℎ𝑜𝑢𝑟𝑠)
𝑂𝑣𝑒𝑟𝑡𝑖𝑚𝑒 𝑃𝑎𝑦 = $14.78 𝑥 6.25 = $92.38
𝐺𝑟𝑜𝑠𝑠 𝑃𝑎𝑦 = $334.90 + $92.38 = $427.28
Learning Activity 2.2: Overtime Pay
1. Tim earns an hourly wage of $8.25 at a local grocery store. His normal work week is 40
hours. If he works over that, he gets paid time and one half in overtime pay. What is his gross
pay for a week that he works 47 hours this week?
2. Wesley works at a pizza place as a cook and makes $9.75 an hour. He gets paid overtime pay
of time and one half if he works more than 7 hours a day. If Wesley works the following
hours this week, how much does he get paid this week?
M – 7.5 T – 8, W – 7, Th – 7, F – 8
3. Calculate the gross income for the following employee if his hourly wage is $11.26 and
overtime is paid at time and one-half on all hours worked over 40 per week and on any
Saturday hours. Double time is paid for any hours worked on Sunday.
Monday
8
Tuesday
10.75
Wednesday
8.5
Thursday
9
Friday
8
Saturday
4
Sunday
4.5
6
Grade 10 Essential Math
Personal Finance
Curriculum Outcomes:
10E1.P.1. Demonstrate an understanding of calculations for gross pay and net pay earned through income sources
including: wages, salary, contracts, commissions, piecework
Lesson 1 Assignment: Gross Pay and Overtime Pay
SEE YOUR TEACHER FOR LESSON 1 ASSIGNMENT
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Grade 10 Essential Math
Personal Finance
LESSON 2:
ALTERNATIVE WAYS TO EARN AN INCOME
Lesson Focus
In this lesson, you will
 identify various methods of earning income
 demonstrate an understanding of calculations for gross pay
Lesson Introduction
All of us have to work for a living. Depending on your career choices, you can make money in a
variety of ways. This lesson examines the various methods of earning income.
Commission
Some of the highest paid sales people in Canada are paid strictly on commission where they are
paid a percentage of their sales. If you are comfortable talking with people and have a popular
product to sell, you can make a nice income on commission. But the reverse can also be true if
sales are slow. People who sell real estate, life insurance, and automobiles are usually paid on
commission. However, if the economy is bad, and people are not purchasing as much,
commissions are low.
Example:
Charlie is paid 1.5% commission on house sales. Last week he sold 3 homes, valued at $95,000,
$130,000, and $175,500. Find his gross pay for last week.
Solution:
𝑡𝑜𝑡𝑎𝑙 𝑠𝑎𝑙𝑒𝑠 = $95,000 + $130,000 + $175,500 = $400,500
𝐶𝑜𝑚𝑚𝑖𝑠𝑠𝑖𝑜𝑛 𝑟𝑎𝑡𝑒 = 1.5% = 0.015
𝐶𝑜𝑚𝑚𝑖𝑠𝑠𝑖𝑜𝑛 = (𝑆𝑎𝑙𝑒𝑠)(𝑐𝑜𝑚𝑚𝑖𝑠𝑠𝑖𝑜𝑛 𝑟𝑎𝑡𝑒)
𝐺𝑟𝑜𝑠𝑠 𝑃𝑎𝑦 = $400 500 𝑥 0.015 = $6007.05
This is a high weekly salary compared to what most other jobs pay, but remember that if Charlie
sold no houses, he would receive no income.
Example:
Sarah is working in an ice cream store. She is paid strictly on commission at the rate of 22% of
all sales she makes. If her sales during one freezing week last February were $180, find her gross
income for that week.
Solution:
𝐶𝑜𝑚𝑚𝑖𝑠𝑠𝑖𝑜𝑛 = (𝑆𝑎𝑙𝑒𝑠)(𝑐𝑜𝑚𝑚𝑖𝑠𝑠𝑖𝑜𝑛 𝑟𝑎𝑡𝑒)
𝐶𝑜𝑚𝑚𝑖𝑠𝑠𝑖𝑜𝑛 = $180 𝑥 0.22 = $39.60
8
Grade 10 Essential Math
Personal Finance
Salary plus Commission
Some businesses, such as big department stores, will pay sales staff a base salary plus a
commission. This ensures the staff will at least have some income each week when sales are
slow.
Example:
Brian is a salesman in a store selling top quality home furnishings and earns a salary plus a
commission. The owner pays Brian a base salary of $450 per week, plus 5% commission on all
his sales. If Brian sold $12,275 in furnishings last week, find his gross pay for the week.
Solution:
𝐵𝑎𝑠𝑒 𝑆𝑎𝑙𝑎𝑟𝑦 = $450
𝑐𝑜𝑚𝑚𝑖𝑠𝑠𝑖𝑜𝑛 = (𝑆𝑎𝑙𝑒𝑠)(𝑐𝑜𝑚𝑚𝑖𝑠𝑠𝑖𝑜𝑛 𝑟𝑎𝑡𝑒)
𝑐𝑜𝑚𝑚𝑖𝑠𝑠𝑖𝑜𝑛 = $12 275 𝑥 0.05 = $613.75
𝐺𝑟𝑜𝑠𝑠 𝑝𝑎𝑦 = $450 + $613.75
Example:
Meghan sells appliances for a major department store. She receives a monthly salary of $850
plus 3% commission on her sales. If this week’s sales were $6800, find her gross weekly income.
Solution:
𝑆𝑡𝑒𝑝 1: 𝐶𝑜𝑛𝑣𝑒𝑟𝑡 𝑡ℎ𝑒 𝑏𝑎𝑠𝑒 𝑚𝑜𝑛𝑡ℎ𝑙𝑦 𝑠𝑎𝑙𝑎𝑟𝑦 𝑖𝑛𝑡𝑜 𝑎𝑛 𝑤𝑒𝑒𝑘𝑙𝑦 𝑠𝑎𝑙𝑎𝑟𝑦.
𝑊𝑒 𝑚𝑢𝑠𝑡 𝑐𝑜𝑛𝑣𝑒𝑟𝑡 𝑡𝑜 𝑎𝑛 𝑎𝑛𝑛𝑢𝑎𝑙 𝑠𝑎𝑙𝑎𝑟𝑦 𝑓𝑖𝑟𝑠𝑡, 𝑡ℎ𝑒𝑛 𝑤𝑒 𝑐𝑜𝑛𝑣𝑒𝑟𝑡 𝑡𝑜 𝑤𝑒𝑒𝑘𝑙𝑦.
𝐴𝑛𝑛𝑢𝑎𝑙 𝑠𝑎𝑙𝑎𝑟𝑦 = $850 𝑥 12 = $10 200
$10 200
𝑤𝑒𝑒𝑘𝑙𝑦 𝑠𝑎𝑙𝑎𝑟𝑦 =
= $196.15
12
𝑆𝑡𝑒𝑝 2: 𝐶𝑎𝑙𝑐𝑢𝑙𝑎𝑡𝑒 𝑡ℎ𝑒 𝑐𝑜𝑚𝑚𝑖𝑠𝑠𝑖𝑜𝑛.
𝑐𝑜𝑚𝑚𝑖𝑠𝑠𝑖𝑜𝑛 = $6800 𝑥 0.03 = $204
𝑆𝑡𝑒𝑝 3: 𝐹𝑖𝑛𝑑 𝑡ℎ𝑒 𝑡𝑜𝑡𝑎𝑙 𝑤𝑒𝑒𝑘𝑙𝑦 𝑝𝑎𝑦
𝑡𝑜𝑡𝑎𝑙 𝑤𝑒𝑒𝑘𝑙𝑦 𝑝𝑎𝑦 = $196.15 + $204 = $400.15
9
Grade 10 Essential Math
Personal Finance
Learning Activity 2.3: Commission
1. Bob is a car salesman and earns a straight commission of 7.5% of his total sales. If Bob sold
3 cars this past month and they cost $17,475; $30,330; and $36,715 how much did Bob earn
last month?
2. Sara is also a salesman. She earns $350 each week plus 6% commission on any amount of
sales over $20,000. If she had $62,000 in sales this month, what is her gross pay?
3. A car salesperson is paid 1 % commission on all sales. If her sales totalled $74,380, find her
gross income.
4. An appliance salesperson earns a base salary of $300 per week, plus 4% commission on his
sales. If his sales totalled $6845 for two months, find his monthly earnings.
10
Grade 10 Essential Math
Personal Finance
Piecework
Another method of earning income is through piecework. You are paid for the number of things
you make. If you are working in a garment factory, sewing zippers onto jackets, you might get
paid an amount for each zipper properly sewn. Piecework income encourages workers to apply
themselves and not waste time. Some companies deduct pay for pieces not assembled properly.
Example:
Hubert is paid $5 for every bike he assembles and puts on the rack at the local Bike*Mart store.
The manager deducts $3.50 off his pay for each bike placed on the rack that is not assembled
properly. Calculate Hubert’s weekly gross income if he assembled 120 bikes, but had 26 rejected
by the manager.
Solution:
𝑃𝑎𝑦 𝑓𝑜𝑟 𝑡ℎ𝑒 𝑏𝑖𝑘𝑒𝑠 𝑎𝑠𝑠𝑒𝑚𝑏𝑙𝑒𝑑 = $5 𝑥 120 = $600
𝐷𝑒𝑑𝑢𝑐𝑡𝑖𝑜𝑛𝑠 𝑓𝑜𝑟 𝑖𝑚𝑝𝑟𝑜𝑝𝑒𝑟 𝑎𝑠𝑠𝑒𝑚𝑏𝑙𝑦 = $3.50 𝑥 26 = $91
𝑔𝑟𝑜𝑠𝑠 𝑝𝑎𝑦 = $600 − $91 = $509
Example:
Shauna has a job assembling phone packages into boxes. She has to insert the phone, the cords,
and the power supply. Then the box is closed and sent down the line for shipping. She is paid
$0.75 for each box packaged, and has $0.50 deducted for any faulty packaging. Find her weekly
gross pay if she packaged 580 boxes, but had 96 returned.
Solution:
𝑃𝑎𝑦 𝑓𝑜𝑟 𝑡ℎ𝑒 𝑝𝑎𝑐𝑘𝑎𝑔𝑒𝑠 = $0.75 𝑥 580 = $435
𝐷𝑒𝑑𝑢𝑐𝑡𝑖𝑜𝑛𝑠 𝑓𝑜𝑟 𝑓𝑎𝑢𝑙𝑡𝑦 𝑝𝑎𝑐𝑘𝑎𝑔𝑒𝑠 = $050 𝑥 96 = $48
𝑔𝑟𝑜𝑠𝑠 𝑝𝑎𝑦 = $435 − $48 = $387
Contract
Examples of companies using a contract are companies that do driveway installations, home
renovations, property landscaping, or roofing. Many contractors will have you sign a contract in
which you promise to pay them a fixed amount upon completion of the job. Most will also agree
on a contract without considering the number of hours needed to complete the job.
Example:
John is a painter and has negotiated a contract with a homeowner to paint the exterior of the
house. His rate is $30/hour plus the cost of the materials. He takes three days at 6 hours a day to
paint and uses 15 gallons of paint that cost $45 each. What is the cost that he will charge the
homeowner?
Solution:
𝑤𝑎𝑔𝑒 = ($30)(6 ℎ𝑜𝑢𝑟𝑠)(3𝑑𝑎𝑦𝑠) = $540
𝑚𝑎𝑡𝑒𝑟𝑖𝑎𝑙 𝑐𝑜𝑠𝑡 = ($45)(15) = $675
𝑡𝑜𝑡𝑎𝑙 𝑐𝑜𝑠𝑡 = $540 + $675 = $1215
11
Grade 10 Essential Math
Personal Finance
Learning Activity 2.4: Piecework and Contract
1. You are bundling fliers for a newspaper and are paid $0.35 for each bundle. If you are really
good at your job and can bundle 22 fliers an hour:
a. how much would you make in an 8 hour day?
b. how much would you make in a 40 hour work week?
2. You are paid $0.10 per button to sew buttons on shirts. The boss deducts $0.05 for each flaw
in your work. If you sewed 6500 buttons last week, but had 800 returned, find your gross
earnings.
3. John is a contract painter. What will he charge his customer if the job required 6 cans of paint
and took 4 hours to complete? John paid $12.99 for each can of paint, the rollers and trim
tools cost another $35.95 and he pays himself an hourly rate of $14.35.
12
Grade 10 Essential Math
Personal Finance
Curriculum Outcomes:
10E1.P.1. Demonstrate an understanding of calculations for gross pay and net pay earned through income sources
including: wages, salary, contracts, commissions, piecework
Lesson 2 Assignment: Alternative Ways to Earn an Income
SEE YOUR TEACHER FOR LESSON 2 ASSIGNMENT
13
Grade 10 Essential Math
Personal Finance
LESSON 3: TIME CARDS AND LATE PENALTIES
Lesson Focus
In this lesson, you will: learn to analyze and interpret time cards
Lesson Introduction
Most businesses that employ many workers will have you “punch in” a card into a time clock,
which records the exact time you started your shift, and then “punch out” your card at the end of
your shift. Other businesses require that employees wear a name tag, which has a bar code on it.
The tag is scanned when you start and when you finish your shift. This lesson deals with reading
time cards with the intent of establishing hours worked and determining gross pay.
Hours at Work
It is important that you understand that one-hour is 60 minutes long. So 15 minutes out of those
60 minutes would constitute a quarter of an hour, which is 0.25 hours. 30 mins is 0.5 hours and
45 mins is 0.75 hours.
Time Cards
Example:
Calculate the gross pay for the employee in the time card below.
Employee. Jim Dandy
Hourly Rate: $9.35
Morning
Day
In
Out
Mon
Afternoon
In
Out
1:00
5:00
1:00
4:30
Evening
In
Out
5:15
9:30
Hours
Tues
Wed
Thurs
Fri
Sat
9:45
12:00
1:30
4:45
Sun
Hours
Rate
Amount
Regular
Overtime
Total Hours
Gross Pay
14
Grade 10 Essential Math
Personal Finance
Solution:
Employee. Jim Dandy
Hourly Rate: $9.35
Morning
Day
In
Out
Mon
Afternoon
Evening
In
Hours
In
Out
Out
1:00
5:00
4
1:00
4:30
3.5
Tues
Wed
Thurs
5:15
9:30
4.25
Fri
Sat
9:45
12:00
1:30
4:45
5.5
Sun
Hours
Regular
Overtime
Total Hours
17.25
Rate
Amount
$9.35
$9.35 x 17.25=
$161.29
0
17.25
Gross Pay
$161.29
15
Grade 10 Essential Math
Personal Finance
Example:
Susan works for a retail store in the mall. The company pays overtime hours over 40 per week at
time and one-half. Add up Susan’s regular hours, determine the number of overtime hours, and
then calculate her gross pay.
Assume that her regular workday is from 8:00 – 12:00 am, she gets a one hour lunch break then
her afternoon hours are 1:00 to 5:00. Any hours worked over 8 in a day are overtime hours as
well as any hours she works on weekends and are paid at time and a half.
Employee. Susan Que
Hourly Rate: $10.28
Morning
Afternoon
Day
In
Out
In
Out
Mon
8:00
12:01
1:00
5:05
Tues
7:58
12:00
1:03
5:03
Wed
7:00
12:05
1:00
Thurs
8:04
12:02
Fri
8:00
12:02
Sat
Evening
In
Out
5:30
7:00
9:30
12:57
5:04
6:45
9:30
12:57
5:04
1:00
5:00
Hours
Sun
Hours
Rate
Amount
Regular
Overtime
Total Hours
Gross Pay
16
Grade 10 Essential Math
Personal Finance
Solution:
Employee. Susan Que
Hourly Rate: $10.28
Morning
Afternoon
Evening
Day
In
Out
In
Out
Mon
8:00
12:01
1:00
5:05
8
Tues
7:58
12:00
1:03
5:03
8
Wed
7:00
12:05
1:00
5:30
7:00
9:30
12
Thurs
8:04
12:02
12:57
5:04
6:45
9:30
10.75
Fri
8:00
12:02
12:57
5:04
8
1:00
5:00
4
Sat
In
Hours
Out
Sun
Hours
Regular
Rate
40
Amount
$10.28
Overtime
10.75
$10.28 x 1.5=
$15.42
Total Hours
50.75
Gross Pay
$10.28 x 40 =
$411.20
$15.42 x 10.75=
$165.77
$411.20+$165.77=
$576.97
17
Grade 10 Essential Math
Personal Finance
Learning Activity 2.5: Time Cards
1. Harry works in a hospital. He is paid overtime at time and one-half for any hours worked
over 8 each day from Monday to Friday, and paid double time for any work on Sunday. Use
the following time card to calculate Harry’s gross pay.
Employee. H. Smith
Hourly Rate: $17.30
Morning
Afternoon
Day
In
Out
In
Out
Mon
5:00
10:15
1:15
5:30
Tues
7:30
12:00
1:00
5:30
Wed
7:29
12:01
1:02
5:35
7:00
12:00
6:30
12:15
Evening
In
Out
7:30
11:15
Hours
Thurs
Fri
Sat
Sun
Hours
Rate
Amount
Regular
Overtime x 1.5
Overtime x 2
Total Hours
Gross Pay
18
Grade 10 Essential Math
Personal Finance
2. Complete Janice’s time card and calculate her gross earnings. She earns $12.56 per
hour, overtime is paid at time and one-half on any hours worked over 40 per week.
Employee. Susan Que
Hourly Rate: $12.56
Morning
Afternoon
Day
In
Out
In
Out
Mon
7:45
12:00
1:00
5:15
Tues
8:01
12:03
12:57
5:01
Wed
8:00
12:00
1:01
Thurs
7:58
11:59
Fri
8:00
12:00
Evening
In
Out
5:27
7:00
9:45
1:01
5:00
7:00
9:15
1:01
5:15
Hours
Sat
Sun
Hours
Rate
Amount
Regular
Overtime
Total Hours
Gross Pay
19
Grade 10 Essential Math
Personal Finance
Late Penalties:
Some companies penalize workers for being late or leaving early. The penalty is deducted off the
worker’s pay for each quarter hour, or part thereof, the worker starts late or leaves early. This
means that some companies give a penalty of one-quarter hour (15 minutes) for employees
being late or leaving early.
So, even if you show up only 2 minutes late, the employee will deduct 15 minutes from your
hours worked. Or, if you leave 5 minutes early at the end of the day, the employer deducts 15
minutes from your hours worked.
Example:
Find the penalties given to an employee if she shows up at 8:07 in the morning and leaves at 4:58
in the afternoon. What is the total number of hours this employee will be penalized?
Solution:
𝑇ℎ𝑒 𝑒𝑚𝑝𝑙𝑜𝑦𝑒𝑒 𝑠ℎ𝑜𝑢𝑙𝑑 𝑏𝑒 𝑎𝑡 𝑤𝑜𝑟𝑘 𝑎𝑡 8: 00 𝑠𝑜 𝑡ℎ𝑒𝑦 𝑎𝑟𝑒 7 𝑚𝑖𝑛𝑢𝑡𝑒𝑠 𝑙𝑎𝑡𝑒
𝑇ℎ𝑒 𝑝𝑒𝑛𝑎𝑙𝑡𝑦 𝑖𝑠 15 𝑚𝑖𝑛𝑢𝑡𝑒𝑠 = 0.25 ℎ𝑜𝑢𝑟𝑠
𝑇ℎ𝑒 𝑒𝑚𝑝𝑙𝑜𝑦𝑒𝑒 𝑠ℎ𝑜𝑢𝑙𝑑 𝑏𝑒 𝑎𝑡 𝑤𝑜𝑟𝑘 𝑢𝑛𝑡𝑖𝑙 5: 00 𝑡ℎ𝑒𝑦 𝑙𝑒𝑓𝑡 2 𝑚𝑖𝑛𝑢𝑡𝑒𝑠 𝑒𝑎𝑟𝑙𝑦
𝑇ℎ𝑒 𝑝𝑒𝑛𝑎𝑙𝑡𝑦 𝑖𝑠 15 𝑚𝑖𝑛𝑢𝑡𝑒𝑠 = 0.25 ℎ𝑜𝑢𝑟𝑠
𝑇𝑜𝑡𝑎𝑙 𝑝𝑒𝑛𝑎𝑙𝑡𝑦 = 0.25 + 0.25 = 0.5 ℎ𝑜𝑢𝑟𝑠
Example:
Find the penalties given to an employee if the following hours are on her time card: 8:17, 12:01,
1:05, and 4:55.
Solution:
𝑇ℎ𝑒 𝑒𝑚𝑝𝑙𝑜𝑦𝑒𝑒 𝑠ℎ𝑜𝑢𝑙𝑑 𝑏𝑒 𝑎𝑡 𝑤𝑜𝑟𝑘 𝑎𝑡 8: 00 𝑠𝑜 𝑡ℎ𝑒𝑦 𝑎𝑟𝑒 17 𝑚𝑖𝑛𝑢𝑡𝑒𝑠 𝑙𝑎𝑡𝑒
𝑇ℎ𝑒 𝑝𝑒𝑛𝑎𝑙𝑡𝑦 𝑖𝑠 30 𝑚𝑖𝑛𝑢𝑡𝑒𝑠 = 0.5 ℎ𝑜𝑢𝑟𝑠
𝑇ℎ𝑒 𝑒𝑚𝑝𝑙𝑜𝑦𝑒𝑒 𝑠ℎ𝑜𝑢𝑙𝑑 𝑏𝑒 𝑎𝑡 𝑤𝑜𝑟𝑘 𝑎𝑡 1: 00 𝑠𝑜 𝑡ℎ𝑒𝑦 𝑎𝑟𝑒 5 𝑚𝑖𝑛𝑢𝑡𝑒𝑠 𝑙𝑎𝑡𝑒
𝑇ℎ𝑒 𝑝𝑒𝑛𝑎𝑙𝑡𝑦 𝑖𝑠 15 𝑚𝑖𝑛𝑢𝑡𝑒𝑠 = 0.25 ℎ𝑜𝑢𝑟𝑠
𝑇ℎ𝑒 𝑒𝑚𝑝𝑙𝑜𝑦𝑒𝑒 𝑠ℎ𝑜𝑢𝑙𝑑 𝑏𝑒 𝑎𝑡 𝑤𝑜𝑟𝑘 𝑢𝑛𝑡𝑖𝑙 5: 00 𝑡ℎ𝑒𝑦 𝑙𝑒𝑓𝑡 5 𝑚𝑖𝑛𝑢𝑡𝑒𝑠 𝑒𝑎𝑟𝑙𝑦
𝑇ℎ𝑒 𝑝𝑒𝑛𝑎𝑙𝑡𝑦 𝑖𝑠 15 𝑚𝑖𝑛𝑢𝑡𝑒𝑠 = 0.25 ℎ𝑜𝑢𝑟𝑠
𝑇𝑜𝑡𝑎𝑙 𝑝𝑒𝑛𝑎𝑙𝑡𝑦 = 0.5 + 0.25 + 0.25 = 1 ℎ𝑜𝑢𝑟
20
Grade 10 Essential Math
Personal Finance
Example:
C.D. Romm is the assistant manager of a computer store. His hours are from 8:00 to 12:00 in the
morning and from 1:00 to 5:00 in the afternoon, Monday to Friday. Any hours worked beyond
this time are paid at time and a half. He is docked a quarter of an hour for every quarter of an
hour or part thereof that he arrives late or leaves early. Complete the time card below and find
C.D.’s gross weekly wages.
Name:
Morning
Afternoon
Day
In
Out
In
Out
Mon
8:15
11:36
12:58
5:05
Tues
7:55
12:02
1:00
4:49
Wed
8:16
12:01
12:56
4:48
Thurs
8:07
11:45
1:00
Fri
7:56
12:00
1:02
Overtime
In
Out
5:03
6:15
8:45
4:06
6:00
9:30
9:30
12:00
Sat
Hours
REG.
OT
Su
Hours
Regular
Rate
Amount
$14.85
Overtime
Total Hours
Total Earnings
Learning Activity: 2.6 Late Penalties
1. An employee logged in at 7:58, and left at 11:59. Does he lose pay?
2. A worker logged in at 8:02, and left at 11:57. What pay does he lose?
3. Sylvia is employed in a hospital, and earns $27.78 per hours. She is paid double time for
any hours worked on Sunday, and time and one-half for any hours over 40 per week. Use
the time card to find her gross pay for the week. Her employer uses the 15 minute rule,
her hours are from 7:00 – 11:00 in the morning and 12:00 – 4:00 in the afternoon.
21
Grade 10 Essential Math
Personal Finance
Employee. Sylvia
Hourly Rate: $27.78
Morning
Afternoon
Day
In
Out
In
Out
Mon
7:00
11:15
12:15
6:00
Tues
7:01
11:00
12:07
4:00
Wed
7:15
11:01
12:02
5:00
Thurs
7:00
11:00
12:00
5:15
Fri
7:03
11:00
12:00
3:58
6:00
12:00
Evening
In
Hours
Out
Sat
Sun
Hours
Rate
Amount
Regular
Overtime x 1.5
Overtime x 2
Total Hours
Gross Pay
22
Grade 10 Essential Math
Personal Finance
Curriculum Outcomes
P.4 calculate penalties for lateness
Lesson 3 Assignment: Time Cards and Penalties
SEE YOUR TEACHER FOR LESSON 3 ASSIGNMENT
23
Grade 10 Essential Math
Personal Finance
LESSON 4:
ADDITIONAL EARNINGS AND BONUSES
A bonus is an extra amount earned for a job well done or for exceeding expectations, and is paid
in addition to regular pay and/or overtime pay. It may be a lump sum or a percentage of earnings.
Danger pay, isolation pay, a shift premium, and tips are also paid in addition to regular pay.
Examples:
Deb works in a restaurant on evenings and weekends. She is paid $10 per hour, plus 90% of all
tips received. If she worked 18 hours this week, and received $280 in tips, find her gross pay.
Solution:
𝑃𝑎𝑦 𝑓𝑜𝑟 𝑟𝑒𝑔𝑢𝑙𝑎𝑟 ℎ𝑜𝑢𝑟𝑠 = $10 𝑥 18 = $180
𝐸𝑎𝑟𝑛𝑖𝑛𝑔𝑠 𝑓𝑟𝑜𝑚 𝑡𝑖𝑝𝑠 = $280 𝑥 0.90 = $252
𝐺𝑟𝑜𝑠𝑠 𝑃𝑎𝑦 = $180 + $252 = $432
Example:
Marika works during the summer as a supervisor of a children’s program at the local community
centre. She has a good reputation with the 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? What is her new salary for the summer job?
𝑅𝑒𝑔𝑢𝑙𝑎𝑟 𝑃𝑎𝑦 = $3600
𝐵𝑜𝑛𝑢𝑠 = $3600 𝑥 0.15 = $540
𝐺𝑟𝑜𝑠𝑠 𝑃𝑎𝑦 = $3600 + $540 = $4140
Example:
Suzette works as a waitress in a local café in Selkirk, MB. Today she had sales of $450.35 and
gets 15% for her tips. What did she earn in tips today?
𝑇𝑖𝑝𝑠 = $450.35 𝑥 0.15 = $67.55
24
Grade 10 Essential Math
Personal Finance
Curriculum Outcomes:
10E1.P.1. Demonstrate an understanding of calculations for gross pay and net pay earned through income sources
including: wages, salary, contracts, commissions, piecework
Lesson 4 Assignment: Additional Earnings
SEE YOUR TEACHER FOR LESSON 4 ASSIGNMENT
25
Grade 10 Essential Math
Personal Finance
LESSON 5: CHANGES IN INCOME
Formulas:
𝑎𝑚𝑜𝑢𝑛𝑡 𝑜𝑓 𝑟𝑎𝑖𝑠𝑒 = (𝑜𝑙𝑑 𝑤𝑎𝑔𝑒)(𝑝𝑒𝑟𝑐𝑒𝑛𝑡 𝑜𝑓 𝑟𝑎𝑖𝑠𝑒)
𝑛𝑒𝑤 𝑤𝑎𝑔𝑒 = 𝑜𝑙𝑑 𝑤𝑎𝑔𝑒 + 𝑎𝑚𝑜𝑢𝑛𝑡 𝑜𝑓 𝑟𝑎𝑖𝑠𝑒
% 𝑟𝑎𝑖𝑠𝑒 =
𝑎𝑚𝑜𝑢𝑛𝑡 𝑜𝑓 𝑟𝑎𝑖𝑠𝑒
∗ 100%
𝑜𝑙𝑑 𝑤𝑎𝑔𝑒
Example:
A mechanic was earning $630 a week. Last week he got a 10% raise. How much more is he
making a week? What is his new weekly salary?
Solution:
𝑎𝑚𝑜𝑢𝑛𝑡 𝑜𝑓 𝑟𝑎𝑖𝑠𝑒 = ($630)(0.10) = $63
𝑛𝑒𝑤 𝑤𝑎𝑔𝑒 = $630 + $63 = $693
Example:
A waiter was earning $5.75 an hour. The boss gave the waiter a raise of $1.00. Find the percent
rate of increase.
Solution:
𝑎𝑚𝑜𝑢𝑛𝑡 𝑜𝑓 𝑟𝑎𝑖𝑠𝑒 = $1.00
% 𝑟𝑎𝑖𝑠𝑒 =
$1.00
∗ 100% = 17.4%
$5.75
Example:
The employees of Company X are given two options for an increase in wages. They can either
earn $1.00 more per hour or have their hourly rate of pay increased by 15%. Employee A earns
$7.50 an hour which option should the employee choose in order to maximize the hourly rate of
pay?
Solution:
𝑎𝑚𝑜𝑢𝑛𝑡 𝑜𝑓 𝑟𝑎𝑖𝑠𝑒 = $1.00
𝑛𝑒𝑤 𝑤𝑎𝑔𝑒 = $7.50 + $1.00 = $8.50
OR
𝑎𝑚𝑜𝑢𝑛𝑡 𝑜𝑓 𝑟𝑎𝑖𝑠𝑒 = ($7.50)(0.15) = $1.13
𝑛𝑒𝑤 𝑤𝑎𝑔𝑒 = $7.50 + $1.13 = $8.63
Example:
Last year a secretary was paid $32 000. Due to good work and improved qualifications, they receive
a raise and now earn $34 560. What was the percent raise they received?
Solution:
𝑎𝑚𝑜𝑢𝑛𝑡 𝑜𝑓 𝑟𝑎𝑖𝑠𝑒 = $34 560 − $32 000 = $2560
$2560
% 𝑟𝑎𝑖𝑠𝑒 =
∗ 100% = 8%
$32 000
26
Grade 10 Essential Math
Personal Finance
Curriculum Outcomes:
10E1.P.1. Demonstrate an understanding of calculations for gross pay and net pay earned through income sources
including: wages, salary, contracts, commissions, piecework
Lesson 5 Assignment: Changes in Income
SEE YOUR TEACHER FOR LESSON 5 ASSIGNMENT
27
Grade 10 Essential Math
Personal Finance
LESSON 6: DEDUCTIONS AND NET PAY
Lesson Introduction:
When you work at a job you have to pay certain deductions. The amount you earn before
deductions is called Gross Income and the amount you earn after deductions is called Net
Income.
Net Income – is your “take home pay”; it is the amount left after deductions
Deductions: are the amounts that are taken off of your gross pay; there are three basic types of
deductions:
1. Employer deductions: insurance (life, dental, medical), union dues
2. Voluntary deductions: charitable donations, RRSP
3. Mandatory deductions:
a. EI – employment insurance,
b. CPP – Canadian pension plan
Note: EI, CPP, and income tax are based on income as well as age, number of
dependents, charitable donations etc which are taken into consideration by the
different claim codes.
***NOTE: Provincial and Federal tax are found using Taxable Income
𝑻𝒂𝒙𝒂𝒃𝒍𝒆 𝑰𝒏𝒄𝒐𝒎𝒆 = 𝑮𝒓𝒐𝒔𝒔 𝑰𝒏𝒄𝒐𝒎𝒆 − 𝑼𝒏𝒊𝒐𝒏 𝑫𝒖𝒆𝒔 − 𝑹𝑹𝑺𝑷
c. Provincial Income Tax – each province in Canada sets its own tax rates; depending on
your level of income, you will fall into one of three tax brackets; is found using Taxable
Income
d. Federal Income Tax – the federal government of Canada sets its own tax rate; similar to
provincial rates the amount you are taxed depends on your level of income, is found
using Taxable Income
Formula:
𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒 = 𝐺𝑟𝑜𝑠𝑠 𝐼𝑛𝑐𝑜𝑚𝑒 − 𝐷𝑒𝑑𝑢𝑐𝑡𝑖𝑜𝑛𝑠
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Grade 10 Essential Math
Personal Finance
Example:
Gary works at a bus manufacturing company. He is paid $17.30 an hour. His work week is 40
hours and he has the following deductions: EI = $10.55, CPP = $26.85, Prov Tax = $62 and Fed
Tax = $82.45, what is his net income for the week?
Solution:
𝐺𝑟𝑜𝑠𝑠 𝐼𝑛𝑐𝑜𝑚𝑒 = ($17.30)(40) = $692
𝑇𝑜𝑡𝑎𝑙 𝐷𝑒𝑑𝑢𝑐𝑡𝑖𝑜𝑛𝑠 = $10.55 + $26.85 + $62 + $82.45 = $181.85
𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒 = $692 − $181.85 = $510.15
Example:
Laurel is paid a monthly salary of $2950. The firm charges her a $5.25 per week for parking.
She also has weekly CPP deductions of $30.37, EI of $11.78, federal tax of $92.55, and
provincial tax of $70.65. What is her net income for the week?
Solution:
𝐺𝑟𝑜𝑠𝑠 𝑃𝑎𝑦 𝑓𝑜𝑟 𝑡ℎ𝑒 𝑴𝒐𝒏𝒕𝒉 = $2950
Since all the deductions are each week we need to know her weekly gross pay:
𝐴𝑛𝑛𝑢𝑎𝑙 𝑔𝑟𝑜𝑠𝑠 𝑝𝑎𝑦 = ($2950)(12) = $35400
𝑊𝑒𝑒𝑘𝑙𝑦 𝑔𝑟𝑜𝑠𝑠 𝑝𝑎𝑦 =
$35400
= $680.77
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𝑇𝑜𝑡𝑎𝑙 𝐷𝑒𝑑𝑢𝑐𝑡𝑖𝑜𝑛𝑠 = $5.25 + $30.37 + $11.78 + $92.55 + $70.65 = $210.60
𝑤𝑒𝑒𝑘𝑙𝑦 𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒 = $680.77 − $210.60 = $470.17
Example:
Sam works for a seed company that pays him $11.88 per hour. He worked 32 hours last week.
His deductions include CPP of $15.49, EI $6.58, Federal tax $50.80 and provincial tax $38.55.
What is his net pay for the week?
Solution:
𝐺𝑟𝑜𝑠𝑠 𝑃𝑎𝑦 = ($11.88)(32) = $380.16
𝑇𝑜𝑡𝑎𝑙 𝐷𝑒𝑑𝑢𝑐𝑡𝑖𝑜𝑛𝑠 = $15.49 + $6.58 + $50.80 + $38.55 = $111.42
𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒 = $380.16 − $111.42 = $268.74
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Grade 10 Essential Math
Personal Finance
Curriculum Outcomes:
10E1.P.1. Demonstrate an understanding of calculations for gross pay and net pay earned through income sources
including: wages, salary, contracts, commissions, piecework
Lesson 6 Assignment: Net Income
SEE YOUR TEACHER FOR LESSON 6 ASSIGNMENT
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