Things You Need to Know
Interactive Activities
Sample Problems
- Most jobs are paid with an hourly wage. To find how much someone makes over time, take the hourly wage and multiply it by how many hours they worked.
- Other jobs are salaried. Having a salary means you are paid a certain amount, regardless of how many hours you put in.
- Weekly means once per week. (52 weeks in a year)
- Biweekly means once every two weeks.
- Semi-monthly means twice per month.
- Monthly means once per month.
- Semi-annually means twice per year.
- Annually means once per year.
- Piecework is being paid by the amount of something produced.
- Example: Being paid $15 for every lawn you mow. If you mow 7 lawns, you get $15 x 7 = $105.
- Commission is being paid a percentage of the value of a sale. Sometimes commission is the only source of income, other times people get paid commission on top of an hourly wage.
- Example: Car salesmen get commission. A car salesman might get 3% commission on the value of their sales. If a car salesman sold a $10000 car, they would get $10000 x 0.03 = $300.
- Contracts have an estimated price (a "quote") that should cover the cost of materials, labour, etc., as well as a profit for the person making the contract.
- There are many different types of additional earnings that can be added to a person's gross income (bonus pay, tips, isolation pay, danger pay, etc.)
- Customers are typically expected to tip 15% of the value of their bill. If your bill was $50, you would have to tip 50 x 0.15 = $7.50.
- In the real world, if you didn't have a calculator with you, there is a simple way to calculate 15% for tipping:
- Round your bill to the nearest 10.
- Drop the 0 off the end of that number. This gives you 10% of your bill.
- Find half of that 10% number. This gives you 5% of your bill.
- Add the 10% number to the 5% number.
- Example: your bill is $37.50. Round to $40. Drop the 0 to get 10%: $4. Find half of the 10% number: half of 4 is 2. Add them together: 4 + 2 = 6. So, you should tip about $6.
- In the real world, if you didn't have a calculator with you, there is a simple way to calculate 15% for tipping:
- Gross income refers to your pay before any deductions are taken.
- Taxable income refers to your gross income minus any before-tax deductions.
- Before-tax deductions can include union dues, health/dental plans, union pension plans, etc.
- Net income refers to your pay after all deductions (including taxes) are taken. In other words, net income is what you actually take home.
- There are four main taxes that everyone has deducted:
- Federal tax - ranges from 15% to 29% depending on your income.
- Provincial/territorial tax - depends on your province/territory (see Canada Revenue Agency link under "Interactive Activities").
- Canada Pension Plan (CPP) - currently 4.95%.
- Employment Insurance (EI) - currently 1.88%.
Interactive Activities
Sample Problems
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