6) Job Income Activity |
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Objective: A JOB is an activity you do to earn money. Play this activity to determine how much money you can earn with a job, minus employment deductions and taxes.
About Job Income
A Job is an activity you do to earn money. You may do a Job unpaid as a volunteer to gain experience or to support a cause. Most Jobs require education or skills.
Job INCOME is the wages and other financial benefits (like tips and bonuses) you earn while doing the Job. Your Job Income is subject to deductions and taxes by the government.
Some Jobs pay a salary while others pay hourly.
Hourly pay means you are paid a certain amount for each hour that you work. Salary means you are paid a fixed amount for the year and you are given a partial payment at set times during the year, such as every month or every two weeks.
Deductions are amounts that are taken from your pay by the employer and sent to the government. Taxes are an important part of contributing to society and are used to fund government operations and initiatives, such as roads, schools, first responders, and more.
Terms to Know:
INCOME
WORK HOURS
Most full-time jobs range between 30 to 40 hours each week. People who work shifts or part time may have varied work hours.
EARNINGS
The total amount you are paid, including tips and bonuses. Earnings are considered income.
GROSS INCOME
The total amount of money you earn from the job for a given time period. Gross Income is calculated before any deductions are made to your pay.
DEDUCTIONS
INCOME TAX FEDERAL
Tax rate charged by the Federal Government. This is calculated based on your Gross Income and deducted from your pay. You can find the tax rate on your government website.
INCOME TAX PROVINCIAL
Tax rate charged by the Provincial Government. This is calculated based on your Gross Income and deducted from your pay. You can find the tax rate on your government website.
EMPLOYMENT INSURANCE
A government deduction from your pay that is added to a national fund to help support people who are between jobs. This is sometimes called Unemployment Benefits. You are required to contribute a portion of your pay. Your employer must also contribute an additional amount, which is not considered part of your earnings.
CPP PENSION
A government deduction from your pay that is used to provide money to seniors in retirement. This is usually called a Canada Pension Plan or Social Security. You are required to contribute a portion of your pay. Your employer must also contribute an additional amount, which is not considered part of your earnings.
HEALTH INSURANCE
A deduction from your pay used to provide you with health insurance. Not all employers offer this benefit. Employers that do offer health insurance benefits may pay the full amount of the health insurance premium or they may pay a partial amount with the employee paying the remaining amount through a payroll deduction.
INVESTMENTS
Employees may request that their employer deduct an amount from their earnings and apply it towards an investment owned by the employee, such as retirement savings, mutual funds, stock purchase plan, etc. Some employers will match funds invested by the employee, thereby increasing the amount available to the employee to invest.
NET INCOME
The total amount of money paid to the employee after deductions have been made to the Gross Income.
How to Play
A Job is an activity you do to earn money. You may do a Job unpaid as a volunteer to gain experience or to support a cause. Most Jobs require education or skills.
Job INCOME is the wages and other financial benefits (like tips and bonuses) you earn while doing the Job. Your Job Income is subject to deductions and taxes by the government.
Some Jobs pay a salary while others pay hourly.
Hourly pay means you are paid a certain amount for each hour that you work. Salary means you are paid a fixed amount for the year and you are given a partial payment at set times during the year, such as every month or every two weeks.
Deductions are amounts that are taken from your pay by the employer and sent to the government. Taxes are an important part of contributing to society and are used to fund government operations and initiatives, such as roads, schools, first responders, and more.
Terms to Know:
INCOME
WORK HOURS
Most full-time jobs range between 30 to 40 hours each week. People who work shifts or part time may have varied work hours.
EARNINGS
The total amount you are paid, including tips and bonuses. Earnings are considered income.
GROSS INCOME
The total amount of money you earn from the job for a given time period. Gross Income is calculated before any deductions are made to your pay.
DEDUCTIONS
INCOME TAX FEDERAL
Tax rate charged by the Federal Government. This is calculated based on your Gross Income and deducted from your pay. You can find the tax rate on your government website.
INCOME TAX PROVINCIAL
Tax rate charged by the Provincial Government. This is calculated based on your Gross Income and deducted from your pay. You can find the tax rate on your government website.
EMPLOYMENT INSURANCE
A government deduction from your pay that is added to a national fund to help support people who are between jobs. This is sometimes called Unemployment Benefits. You are required to contribute a portion of your pay. Your employer must also contribute an additional amount, which is not considered part of your earnings.
CPP PENSION
A government deduction from your pay that is used to provide money to seniors in retirement. This is usually called a Canada Pension Plan or Social Security. You are required to contribute a portion of your pay. Your employer must also contribute an additional amount, which is not considered part of your earnings.
HEALTH INSURANCE
A deduction from your pay used to provide you with health insurance. Not all employers offer this benefit. Employers that do offer health insurance benefits may pay the full amount of the health insurance premium or they may pay a partial amount with the employee paying the remaining amount through a payroll deduction.
INVESTMENTS
Employees may request that their employer deduct an amount from their earnings and apply it towards an investment owned by the employee, such as retirement savings, mutual funds, stock purchase plan, etc. Some employers will match funds invested by the employee, thereby increasing the amount available to the employee to invest.
NET INCOME
The total amount of money paid to the employee after deductions have been made to the Gross Income.
How to Play
- Enter values for each of the items. You may need to research some values.
- Review the GROSS INCOME and NET INCOME to see how they compare.
- Use the PRINT button to print to paper or save as an electronic file (pdf). Write your name down on the printout if you will be submitting to an instructor.
- Use the RESET button to erase your data or start over.
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PRACTICE
Click the PLAY ACTIVITY button below to do the activity for MO and then for yourself. Mo Money Play this activity to determine the Job Income for Mo Money, based on his future job income. When calculating monthly amounts, multiply weekly amounts by four (this is not quite exact, but keep it simple). Review the MO MONEY PROFILE. YOUR TURN! Complete your own JOB INCOME activity. |