What I may already know: • Households need income to pay for goods and services. • Employed people get paid for the work they do. • Employed people pay tax on their wages.
Learning Intentions
In this chapter, I will learn: • How wages are paid. • How to calculate basic pay and additional pay. • The difference between statutory and non-statutory deductions. • The difference between gross pay and net pay. • How to calculate the personal taxes deducted from an employee’s wage. • How to calculate an employee’s net pay. • The purpose of a payslip.
Key Words: Paypath Basic pay Time rate Piece rate Commission
Gross pay Deduction
Statutory deductions Non-statutory deductions Income tax
Pay Related Social Insurance (PRSI) Universal Social Charge (USC) Net pay Tax credits Payslip
HOW ARE WAGES PAID?
In chapter 1, we learned that wages are the main source of income for people who are employed. An employee’s wages can be paid in two ways: • Directly into their bank account • In cash.
