B. Income Math 10: A and W WA10.11 Demonstrate understanding of income including: wages salary contracts commissions piecework self-employment gross pay net pay.
Key Terms: • Find the definition of each of the following terms: • Benefits • Bonus • Commission • Contract • Deductions • Gross Pay • Minimum Wage • Net Pay • Overtime • Pay Statement • Piecework • Salary • Self-employment • Shift Premium • Taxable Income • Tips • Wage • Semi-monthly • Bi-weekly
1. Wages and Salaries • WA10.11 • Demonstrate understanding of income including: • wages • Salary • gross pay
1. Wages and Salaries • Math on the Job p. 54 • Read through together and solve
What we just calculated in math on the job for Joseph was his Gross Pay. Gross pay is the amount of money you make in a pay period before deductions • Net Pay is the amount you make after deductions which we will talk about more later.
Most of you that have had a job will have been paid a fixed amount paid hourly or weekly. • Many tradespeople and people in the service industry earn wages calculated this way.
What are some jobs that you can think of that would be considered a trade? Plummer, Electrician, Carpenter • What are some jobs that you can think of that would be in the service industry? Waitress, taxi driver, hairdresser
When employees are asked to work more than 40 hours a week (may be more or less depending on job, union, etc.) this is referred to as overtime • When people work overtime their pay increases. What is reasonable for a pay increase for overtime work? Usually time and a half or double time
A Raise is different than overtime because a raise is an increase in your wage that is received all the time while overtime is only for hours worked over what you are expected to work.
How can you calculate monthly wages when you are paid an hourly wage? • For example, if you make $9.00/h, how much do you make in a month if you work 8 hours a day?
The reason for many raises is because the cost of living increases, these are cost-of-living raises. • These raises are a result of the cost of living increasing, such as housing, common consumer goods. If these increase in price it can result in your wage or salary increasing.
Activity 2.1 – Interpreting Pay Statements p. 55 • Work through the activity with a partner
Discuss the Ideas – Types of Earnings p. 55 • Work through together
People can be paid: • Weekly, bi-weekly, semi-monthly, daily, hourly, annually, by contract, on commission and by piecework • Daily, hourly or weekly paid jobs: Construction, waitress, plumber, electrician, part time jobs
Salary, Bi-weekly, Semi-monthly, and Monthly paid jobs: Full time jobs, teaching, administration jobs, management • Piecework: Delivering newspaper or flyers, manufacturing, sewing, flooring installation, and cabinet installation
Commission: Retail sales, car sales, and selling real estate • Contract Work: Housepainting, construction work
Advantage of being paid weekly is you get more pay periods (52 a year instead of 12 per year) and you would get paid sooner when starting a new job A reason workers are not paid weekly is it would be very expensive for an employer to calculate payroll every week.
Most people on salary do not get paid overtime but often get something in return for putting in extra hours in lieu of payment. For example I get EDOs for coaching volleyball, track, etc.
Mental Example • Hoe many hours are there in a work week that is made up of five 7.5 hour days? How many hours would that be in a year?
In your binder list three of your favorite leisure activities • Now try to think of 2 or 3 jobs that you might find interesting that are linked to these activities.
Example 3 • Kelsey ‘s regular rate at her job in a warehouse is $9.86 an hour. She works 8 hours a day. She has to work a extra shift on a holiday, and her overtime rate is time and a half. • What is her hourly rate on the holiday? • What are Kelsey’s gross earnings for the holiday?
Activity 2.2 – Mind Mapping • Create a mind map that connects kinds of math in different trades • Make a chart of job or chores you have or have had that involve math
Mental Example 1. An office assistant who earns $10.00 an hour was paid $120.00 for 10 hours of work. How is this possible?
Building your Skills • Ex. 2.1 (p. 60) #1-10
2. Other Ways of Earning Income • WA10.11 • Demonstrate understanding of income including: • wages • salary • contracts • commissions • piecework • self-employment
2. Other Ways of Earning Income • Math on the Job p. 64 • This is just one example of how to calculate piecework. You could just charge an amount for each item produced. • Read through together and solve
Piecework, from Math on the Job, has people paid according to the number of items they complete • For example, a person delivering flyers at five cents a flyer, or a apple picker paid $0.65 a pound. The number completed in a hour determines your hourly wage.
A Contract is a legal agreement made between 2 or more partners, that describes the amount of work and type of work and the amount to be paid. • There is often a schedule of payments, with payments at each stage of a job as it is completed. For example, in building a house you may get paid when walls are up, roof is up, shingles, siding, windows, etc.
With a contract you get paid the same amount regardless of how many hours the job takes. • What might be a situation where a contract would be better then being paid by the hour?
To win a contract, tradespeople may provide an estimate or bid and the client selects the winning bid. • A contract between the successful bidder and the client is then negotiated to govern the terms of the job, including price, schedules, and possibly other terms that the parties decided to include.
Self-Employed people often work on a contract basis with their clients, and they may run their own business
In small groups list advantages and disadvantages each way we have looked at to earn money.
Hourly Wage Advantages: set hourly wage, overtime pay Disadvantages: not paid if not there • Salary Advantages: set salary for year, paid for sick days, etc. Disadvantages: no overtime pay, no encouragement to excel
Commission Advantages: big money if good Disadvantages: no set salary, may be slow periods, no money if not good • Commission/Salary Advantages: safety as back up Disadvantages: lower commission
Piecework Advantages: can make big $ if fast, wage based on performance, clear relationship between output and wage Disadvantages: earn less if slow, quantity emphasized of quality
Self-Employment Advantages: freedom to select jobs, set own hours, take time off whenever, own boss, can work alone Disadvantages: may not have enough clients, no benefits or get paid for holidays, have to look after own bookings and book keeping
Activity 2.3 – Piecework vs. Hourly Wage p. 65 • With a partner if you wish work through the activity
Discuss the Ideas – Home Reno p. 65 • Read through together and solve
Discuss the Ideas – Custom Work p. 66 • Read through together and solve