Chapter 2 discusses earning an income, focusing on wages and salaries with examples from various provinces in Canada. It explains the differences between salary and wage, pay periods, and how to calculate gross pay, while also covering aspects like overtime, deductions, and alternative income sources such as commission and piecework. Additionally, it includes scenarios and calculations to illustrate these concepts using real-life examples.

1. CHAPTER 2:
EARNINGAN
INCOME
Math 10-3

2. 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.

3. 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?

4. 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.

5. 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).

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

7. 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)

8. *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

9. 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

10. VНАТ АРЕ ТНЕ ADVANTAGES AND
DISаDУАМТАСЕЯ Он ЕАСН РАУ
РЕЕЮОD?

11. *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!!!*

12. 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

13. 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

14. ASSIGNMENT:SALARIESANDWAGES.DOC

15. Dау 2: НоиВз
VОВКЕD -
СомреТТма Ттмв
Саврв

16. HANDОИТ:
ALBERTA.EMPLOYMENT.STANDARDS

17. 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.

18. 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.

19. 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

20. 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

21. 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.

22. .
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: СомРІЕТЕ ТНЕ POLOWING
TIМЕ CARD:
20
hours

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

24. Daу 3: ОтнеВ WAYS TO EARN -
PIECEWORK AND COMMISSION

25. 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

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

27. 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

28. 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

29. 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?

30. 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?

31. 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:

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

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

34. HANDOUT ALBERTA.STANDARDS.OVERTIME
TO STUDENTS.

35. 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.

36. 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?

37. 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.

38. 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?

39. 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.

40. 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?

41. ASSIGNMENТ: ОУЕРТІМЕ AND
НОШПDАУРАУ.DОС

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

43. 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

44. 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

45. 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.

46. o Marmot Basin example

47. 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.

48. 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

49. 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?

50. 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:

51. Dау 7: СРР, EI AND INCOМЕ
ТАХ

52. 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.

53. 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

54. 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

55. 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:

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

57. 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

58. 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

59. 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

60. 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

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

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

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

64. DAY 8:SELF EMPLOYMENT

65. 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%,

66. 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%!)

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

68. 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!)

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

70. 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).

71. ASSIGNMENT:
SELFEMPLOYMENTPROJECT.DOC