Gross and net income 5th grade

Name 17.3 ? Personal Financial Literacy—5.10.B Also 5.3.K MATHEMATICAL PROCESSES 5.1.A, 5.1.D, 5.1.G Income Essential Question What is the difference between gross income and net income? Income is money you earn, whether from a job, interest from a savings account, or profits from selling items or services. Gross income is your total income before income or other payroll taxes are taken out of it. Net income is the amount that is left after taxes. Taxes based on your earnings, such as income and other payroll taxes, affect your net income. Taxes based on use of items or services, such as sales and property taxes, do not affect your net income. Unlock Unlock the the Problem Problem Jay works at a bank. Use the information in the pay stub to find his gross and net income for the week. The salary from the bank is Jay’s only source of income. Since Jay has one source of income, his net income is the same as the pay after taxes shown on his pay stub. His gross income is the same as his total earnings. 3201 Employee: Jay Martin Total earnings Federal income tax Pay period: July 1 – July 8 $115.00 Other taxes $93.50 Total taxes Pay after taxes $891.50 Detach and retain for your records. His weekly net income is __. To find his gross income, add the payroll tax to his net income. Payroll tax: $__ + $__ = $__. Gross income: $__ + $__ = $__ net income payroll tax © Houghton Mifflin Harcourt Publishing Company So, Jay’s gross income for the week is $__. Write the gross income on his pay stub. Math Talk Mathematical Processes Jay pays $3.65 in sales tax for a meal. Does this change his net income? Explain. • If Jay earns $130.56 after taxes during the same week from a part-time job, how does his net weekly income change? Explain. Module 17 629 Share Share and and Show Show Use the information in the chart for 1–2. 1. What is Tina’s gross income? Tina’s Finances Yearly earnings from part-time job at the bakery Yearly earnings from part-time job at the library $18,000 $14,000 Profit from selling pottery $6,000 Income and other payroll taxes $5,750.50 Think: Gross income is Tina’s total earnings from all her sources of income. Gross income: $__ + $__ + $__ = $__ 2. What is Tina’s net income?. Net income: $__ − $__ = $__ So, her net income is $__. Problem Problem Solving Solving 3. Write Math Daniel works at a grocery store. He earns $8.00 per hour at the deli counter. He works 18 hours each week. If this is Daniel’s only source of income, can you find his net income with the information given? Explain. 4. Use the information in the chart to find Latisha’s gross and net income for the year. Latisha’s Finances Yearly earnings $24,000 Profit from selling handmade sweaters $13,000 Interest from savings account $214 Income and other payroll taxes $5,550.16 5. Explain the relationship between gross income, 630 © Houghton Mifflin Harcourt Publishing Company payroll tax, and net income. Name Problem Problem Solving Solving 6. Multi-Step Eduardo worked for 45 hours last week. His pay is $12 per hour for 40 hours and $18 per hour for any time over 40 hours. His payroll tax was $98.06. If this is Eduardo’s only source of income, what was his net income for last week? 7. Emily is a pharmacist. She earns $50 per hour. If she works on a holiday, she gets paid double the hourly rate. Last week she worked for 38 hours, including 8 hours on a holiday. Emily’s salary is her only source of income. If her net income last week was $1,947, how much was her payroll tax? Explain. 8. Multi-Step Charlie’s total earnings from his job are $45,000. He also earned $2,000 in profit from selling quilts. He pays $18 tax for every $100 in gross income. What is Charlie’s net income? Write Math Show Your Work 9. Apply Geno works at a music store where he earns © Houghton Mifflin Harcourt Publishing Company $16.25 per hour. He works 40 hours per week. Should he take a new job with a gross income of $36,000 per year? Explain your reasoning. Module 17 • Lesson 3 631 Mathematical Processes M Model ¥ Reason ¥ Communicate M Daily Daily Assessment Assessment Task Task Fill in the bubble completely to show your answer. 10. The table shows the gross income and payroll tax for the Barker family members for one week. What is their net income for the week? The Barker Family Income Gross Income Payroll Tax Bea Barker $730 $68.24 Buzz Barker $654 $50.75 A $1,285.01 C $1,264.95 B $1,315.76 D $1,265.01 11. Lana works at the local ice cream store. In the last four weeks, her gross income was $120.75,