Chapter 3: Earned Income

Earned Income

Chapter 3: Income and Taxes 

Objective:

I will list and describe examples of earned income.

Key Terms

• earned income

• wage
  

• overtime wage

• piecework

• salary

• commission

• tip
  •bonus 
  •gross pay
  

Open Ended

Why is it important for a worker to understand how net income is calculated?

*Net income is your take home pay, after you pay taxes etc.

Multiple Choice

The income you receive from employement is called....

• net worth

• net pay

• earned income

Multiple Choice

What would be an example of a wage paying job?

• CEO whose salary is $200,000 a year

• A salesperson who makes commission

• A restaurant employee who makes $9 per hour

Poll

What do you think is the minimum wage in Texas?

• $5.50

• $7.25

• $10.25

Multiple Choice

Overtime wages is the amount you make when you work over the standard 40 hours. Generally you get paid time and a half. What do you multiply your wage by?

• 1

• 1.5

• 2

Multiple Choice

Salary is a fixed income amount expressed as an annual figure.

• True

• False

Multiple Select

What employees commonly receive tips? (Check all the apply)

• Food Servers

• Taxi drivers

• Teacher

Multiple Choice

A _________ is extra money added to an employees pay, usually for doing a good job.

• gross pay

• bonus

• salary

Multiple Choice

Gross pay is...

• Your total income before payroll deductions (taxes)

• Your income after payroll deductions (taxes)