Module 8
1. Module 8
1.34. Lesson 7
Module 8: Daily Living
Lesson 7: Deductions and Net Pay
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Focus
Mike is interviewing a young mechanical engineer as part of his Unit 4 Project. Listen to their conversation in “Mike and Amina.”
In this lesson you will explore deductions and take-home pay.
Lesson Questions
You will explore these questions:
What is net pay, and how is net pay calculated?
How are Canada Pension Plan, Employment Insurance, and income tax deductions calculated?
Assessment
You will complete the Lesson 7 Assignment Booklet for assessment. Download the Lesson 7 Assignment Booklet and save it in your course folder now. You will receive instructions on how to complete the Assignment Booklet later in the lesson. You will also be prompted to continue working on the Unit 4 Project.
Remember to save all activities, including those that are not part of the Assignment Booklet, in your course folder.
Required Materials and Equipment
You will need your calculator, access to the Internet, and your inquiry skills.
Get Started
In the last few lessons in this module you explored various methods of earning income. You learned how to calculate gross income in each case. However, when you receive your first paycheque from your job, you will notice that you do not receive all your gross pay.
Various amounts, such as union dues, taxes, and pension-plan contributions, are subtracted. These amounts are detailed on your paycheque under the category of deductions.
Explore these deductions in “Paystub Explained.”