From Gross to Net: Reading a Paycheck Stub

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Business and Personal Finance · Personal Finance
SP-FIN-002  ·  Free to print and use in your classroom  ·  substituteplans.com
Page 2
From Gross to Net: Reading a Paycheck Stub
Business and Personal Finance · Personal Finance · Grades 10-12 · 45 minutes
Time needed
45 minutes (one class period)
Prep
Copy the 2-page worksheet (one per student). Calculators help but are not required.
Technology
Optional: calculators.
Student
independence
High. Students work alone, then check with a partner.
Copies to make
One 2-page worksheet per student
Materials
Pencils, Worksheet, Calculators (optional)
Goal for today: Students will calculate gross pay, payroll deductions and net pay from given rates, and explain why
take-home pay is lower than gross pay.
Before the bell
☐ Copy the worksheet, one per student (2 pages).
☐ Put out calculators if the room has them. Students can also work by hand.
☐ Write on the board: GROSS = pay before deductions. NET = take-home pay after deductions. DEDUCTION =
money subtracted from a paycheck.
Say this to start
Today you will read a paycheck the way an employee does. Two workers earn the same kind of paycheck, but each
takes home less than they earned. Your job is to find out exactly where the money goes. All the rates are made-up
examples for practice, so you only need the worksheet.
Run of show
Minutes
What you do
What students do
0–5
Take attendance. Hand out the worksheet. Read the three
definitions on the board aloud.
Copy the three terms into the margin if
they like.
5–10
Read the scenario and the rate table aloud. Point out that
the health plan is a flat dollar amount, not a percent.
Follow along and underline the rates.
10–28
Tell students to complete questions 1–8 about Sam.
Remind them to round each deduction to the nearest cent.
Calculate each deduction, the total and net
pay in the work boxes.
28–37
Tell students to complete questions 9–10 about Priya, then
questions 11–13.
Work out overtime pay, then answer the
multiple-choice and short-answer
questions.
37–42
Read answers 1–10 aloud from the key. Students check
their work.
Mark and fix errors in a different color.
42–45
Collect the worksheets and leave them in a stack for the
teacher.
Hand in the worksheet.


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Business and Personal Finance · Personal Finance
SP-FIN-002  ·  Free to print and use in your classroom  ·  substituteplans.com
Page 3
If things go wrong
• If students ask whether these are real tax rates: tell them they are example numbers for practice, not tax
advice.
• If a student gets a total that is a few cents off, check the rounding. Each deduction is rounded to the nearest
cent before adding.
• If students ask about their own pay, welcome the interest but keep personal money details out of the class
discussion.
• If a student is stuck on percents, show that 10% of a number is the number moved one decimal place left.
Early finishers
• Write a one-sentence tip for a new employee about how to check a pay stub for mistakes.
• Choose any hourly wage and number of hours and calculate your own gross pay.
Support and challenge
• Support: Provide a calculator and have students do the five deductions first, then add them in a second pass.
• Challenge: Ask students to find what percent of Priya’s gross pay is taken in deductions and compare it with
Sam’s.
Notes for the teacher (you fill this in)
Jot a few lines before you leave. A full Daily Sub Report is in the free Sub Survival Kit at SubstitutePlans.com.
How far the class got / what to pick up next:
Students who were especially helpful:
Anything the teacher should know: