Income Managment

Question 1

What is a pay stub

Answer 1

A pay stub is a record of wages, taxes, contributions, and deductions that helps employees keep a record of their earnings.

Question 2

What is the formula for gross pay and what is it

Answer 2

Pay Rate * Hours and is pay without taxes

Question 3

What is the formula for net pay and what is it

Answer 3

Gross Pay - Deductions is take home pay / pay with taxes

Question 4

What are variable expenses

Answer 4

The costs of expenses change over time

Question 5

What are fixed expenses

Answer 5

The costs of expenses stay the same

Question 6

What is the formula for monthly take home pay

Answer 6

Gross Annual Salary (sum of all wages, salaries, etc) - Deductions / 12 months

Question 7

What are the 3 things deductions in your pay go towards

Answer 7

1. Canadian Pension Plan (CPP)
2. Employment Insurance
3. Taxes

Question 8

What is the Canadian Pension Plan (CPP)

Answer 8

Provides contributors and their families with partial replacement of earnings in the event of retirement, disability, or death

Question 9

What is Employment insurance

Answer 9

Provides contributors with temporary benefits when they lose their job, have a baby, become ill, or need to care for someone who is ill. This deduction begins at the age of 18.

Question 10

What are taxes

Answer 10

Federal and Provincial Taxes that every Canadian Individual needs to pay