1. How is pay calculated? . . . . . . . . . . . .120 2. What taxes do people have to pay? . . . . .122 3. Why do we have to pay taxes? . . . . . . . .124 4. What does a payslip look like?. . . . . . . . .125 5. How is an employee’s net pay calculated? . .126 Chapter Review . . . . . . . . . . . . . . . . .128
Case Study Payslips
Jason was chatting to his mum Fiona one evening. She was sorting out some of her household paperwork and Jason noticed her payslip. He asked what it was. ‘I suppose it’s a bit like a receipt from my employer listing how much I am paid and how much tax has been taken out of my salary,’ she said. As Jason looked at the payslip, he was amazed at how much money can be deducted in taxes and other payments.
Mum, there’s a big difference between what you get paid and what you actually take home.
There certainly is, Jason. However, we need to remember that the money deducted in taxes is used for important things like schools, hospitals, roads and libraries.
