1. Module 8

1.39. Page 6

Mathematics 10-3 Module 8 Lesson 7

Module 8: Daily Living

 

Lesson Summary

 

This is an image of a tax document, a pen, and glasses.

© JOSEPH SL TAN MATT/11282381/Fotolia

Net income, or take-home pay, is what is left of your gross earnings after deductions. Three of these deductions are Canada Pension Plan contributions, Employment Insurance premiums, and income taxes. These are collected by the Canada Revenue Agency and are based on percentages of your earnings.

 

Other deductions depend on your employment situation. These deductions may include union dues, and company pension contributions. Some deductions are voluntary, such as RRSP contributions and charitable donations.

 

In this lesson you explored the following questions:

  • What is net pay, and how is net pay calculated?

     

  • How are Canada Pension Plan, Employment Insurance, and income tax deductions calculated?

Check your level of understanding of the materials covered in this lesson by completing “Lesson 7 Traffic Lights.” If you select an amber or red traffic light in the multimedia piece, you will receive information about additional work you can complete to improve your understanding of the topics. Complete the suggested work before you proceed to the Lesson 7 Assignment. If you experience difficulty, contact your teacher before starting the Lesson 7 Assignment.

 

You investigated how percentages are used to calculate CPP contributions and EI premiums. You discovered that income taxes can be determined using tables or computer software. One of the tools that enabled you to determine all three of these deductions was the Canada Revenue Agency Payroll Deductions Online Calculator. This CRA tool can be used by the employer to determine an employee’s net income or by the employee to calculate take-home pay!

 

Assignment

 

Retrieve the Lesson 7 Assignment Booklet you saved in your course folder at the start of this lesson. Complete the Assignment Booklet.

 

Resave your Assignment Booklet in your course folder and submit a copy to your teacher for assessment.

 

Unit 4 Project

 

This is the final lesson in this module, so you should be close to finishing your Unit 4 Project. Has this lesson helped you come up with questions you can ask about how much your take-home pay might be as a person starting the job or career you’re investigating? For more information about this step and later steps of the task, review the Unit 4 Project.