In this worksheet, students will analyze a sample pay stub to understand the various components, with a particular focus on the different taxes paid by an employee. By examining the details of the pay stub, students will learn how taxes are automatically deducted from their salary and reflected in their pay statement.
This activity aims to provide students with a clear understanding of the deductions made from their earnings, why the final salary they receive is lesser due to these deductions, and the importance of these taxes.
Activities:
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National Standards in Personal Financial Education
Students will know that Social Security is a federal government program that taxes workers and employers to provide retirement, disability, and survivor income benefits for workers or their dependents .. Students will use this knowledge to 8-6a . Identify the different groups of people who qualify for Social Security benefits . 8-6b . Research the Social Security tax rate for someone who is self-employed vs . someone who is working for an employer . 8-6c . Given information on a worker’s income and today’s Social Security tax rates, calculate what the worker and the worker’s employer will pay in Social Security taxes . 8-6d . Investigate Social Security benefits for people of different income levels at their full retirement age .
Students will know that The government provides income support and assistance for people who qualify based on low income or other criteria .. Students will use this knowledge to 8-8a . Explain the financial situation addressed by Medicaid and SNAP (Supplemental Nutrition Assistance Program) . 8-8b . Give several examples of personal circumstances that qualify for government income support or assistance .
Students will know that Earning Income 12-7. Students will use this knowledge to The type and amount of taxes people pay depend on their sources of income, amount of income, and amount and type of spending .