Cogito
Consumer Math · Chapter 1 · Lesson 2
Deductions and Net Pay
Why the cheque is smaller than the offer.
12 problems · about 21 minutes · TEKS M.M.1.B
What this lesson teaches
The student computes net pay from gross pay after taxes and other deductions.
- Deductions are removed from gross pay to give net pay.
- Some are required, such as taxes; others are chosen.
- Deductions commonly take a fifth to a third of gross pay.
Warm Up
Straightforward practice. Get the method working first.
5 problemsGross $2400, deductions $600. Net pay in dollars?
Answer 1800
Why $1800.
Why must a budget use net pay?
Answer Net pay is the only money that actually arrives.
Why Only net pay is available to spend.
Gross $1800, deductions $400. Net pay in dollars?
Answer 1400
Why 1800 − 400.
Deductions of $200, $150 and $90. Total in dollars?
Answer 440
Why Add them.
Gross $3000, total deductions $756. Net in dollars?
Answer 2244
Why 3000 − 756.
Build It Up
The same ideas with more to keep track of.
3 problemsGross $4000 with 30% deducted. Net in dollars?
Answer 2800
Why 70% of 4000.
Gross $2500, net $2000. Percentage deducted?
Answer 20
Why 500 ÷ 2500.
Should a budget be built on gross or net pay? 1 gross, 2 net.
Answer 2
Why Only one of them arrives.
Stretch Yourself
Mixed problems. Work out what kind of question it is before you start.
4 problemsSort each deduction by whether it is required.
Answer Required: Income tax, Payroll tax for social programmes · Voluntary: Retirement contribution, Union dues
Why Two of these come out whether you choose them or not.
Gross $5000 with 25% deducted. Net in dollars?
Answer 3750
Why 75% of 5000.
The Stub: Gross $2000, deductions $500. What is net pay, in dollars?
Answer 1500 dollars
Why $1500.
The Share: Gross $2000 and net $1500. What percentage was deducted?
Answer 25 %
Why 25%.