Income Flashcards
Define Income
Income is money received my an employee or coming into a household
Main sources of income for a teenager
Babysitting money pocket money and part time jobs
Main sources of Income for a household
They receive income from employment (wages and salaries) pensions and child benefit
Explain benefit in kind provide examples
Non money income is known as benefit in kind or perks an employee may receive company car or phone or health insurance
The difference between regular and irregular income
Regular is a source of income received on a regular basis weekly or monthly e.g wages and salaries irregular is less predictable and not guaranteed e.g overtime bonuses and windfall
Differentiate between a wage and a salary
A wage is payment received for work done unlike fixed payments like salary wages are more likely to vary from one week to the next
What is time rate
Time rate is you wage calculation based on the number of hours worked (e.g 40 hour working week €15 per hour 40 hours by €15=€600)
What is piece rate?
Piece rate is your wage calculation based on the number of hours completed (e.g €3 for clothing made worker completes 200 garments 200 by €3=€600)
Calculate wages for an employee who is paid by piece rate
Number of items complete by pay for item e.g 350 garments by €4=1400
Gross pay?
Gross pay=basic pay + overtime + bonuses + commission earned=gross pay
Net pay?
Net pay known as take home pay is the amount left over after deductions Net pay=Gross pay-total deductions
Statutory deductions?
Statutory deductions are compulsory every worker is required to pay them by law e.g taxes paid to the government
Voluntary deductions.
Voluntary deductions are not compulsory but workers may choose to pay them e.g pensions savings private health insurance and trade union membership
Example of statutory deductions
Pay as you earn (PAYE) + Pay related social insurance (PRSI)
Examples of voluntary deductions
Private health insurance +pensions
