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Other Financial Topics

Source: Couple buying a car - Nastasic/iStock/Getty Images

Different Financial Topics

In previous lessons, we have looked at financial topics such as

 

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Lesson Goals

  • Define different types of employment income (i.e., salary, hourly wages, commission and piece rates) and make calculations relating to each of these.
  • Identify common Canadian deductions (such as income tax, EI, and CPP), calculate the amounts of these deductions based on earnings, and calculate net pay.
  • Compare the advantages and disadvantages of buying, renting, or leasing for major expenses such as housing and vehicles.

Try This

An employee's pay stub, pictured here, indicates their earnings, deductions, and net pay for one pay period (in the "Amount" columns). It also indicates the employee's total earnings, deductions and net pay from the beginning of the year to the present (in the "YTD", or "Year to Date" columns). 

A sample pay stub, see adjacent alternative format.

Earnings:

Type Amount YTD
Regular Salary \($3695.65\) \($22~137.14\)

Deductions:

Type Amount YTD
EI \($59.87\) \($360.24\)
CPP \($188.48\) \($1055.63\)
Tax \($703.25\) \($4152.13\)
Pension Plan \($425.00\) \($2541.54\)
Group Insurance Plan \($59.06\) \($329.87\)
Group Benefits Plan \($11.62\) \($46.50\)
\(\)Union Dues \($60.98\) \($364.61\)
Total \($1508.26\) \($8850.52\)

Net Pay:

Current YTD
\($2187.39\) \($13~286.62\)
  1. What types of deductions have been made from the employee's earnings?  
  2. How is the net pay calculated?