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Calculating the numbers in your paycheck

Updated

Students review a pay stub from a sample paycheck to understand the real-world effect of taxes and deductions on the amount of money they take home.

Big idea

The amount of money you earn from your job is different from the amount of money you take home in your paycheck.

Essential questions

  • How does gross income differ from net income?
  • How does a pay stub serve as a record of earnings and deductions?

Objectives

  • Understand what types of taxes are deducted from a paycheck
  • Calculate the difference between gross income and net income

What students will do

  • Review information on how to read a pay stub and answer questions about earnings and deductions.
  • Calculate tax withholdings, deductions, and the difference between gross income and net income.