Junior Cert Business Studies Income
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Income Income is something earned (money coming into the household). The main types of income are regular income, additional income and benefits-in-kind (perks). Regular income is income that a person receives every week or month e.g. pocket money, wages, salary or unemployment benefit. Additional income is extra income a person receives occasionally e.g. overtime, Christmas bonus or interest on savings. Benefit-in-kind or “perks” are extra benefits given by an employer. Official perks are ones that the employer knows about e.g. company car, medical insurance or travelling expenses. Unofficial perks are ones that the employer does not know about e.g. personal phone calls or pens taken home by staff. Payslip When you are employed you get a payslip. A payslip shows your name, the period you are getting paid for, gross pay, deductions and the net pay. Sample Payslip Name Period Gross Pay Deductions Net Pay (Week 1) Basic Overtime Total PAYE PRSI Savings VHI David Whyte 01/01/2008- 07/01/2008 €600 €100 €70 0 €120 €20 €50 €1 0 €500 Gross Pay is your total income before any deductions have been taken. Gross Pay = Basic Pay + Overtime + Commission + Bonus. Net Pay is your take-home pay. Net Pay = Gross Pay – Deductions. Statutory Deductions are items that must be taken away from your gross pay. They are: • PAYE (Pay As You Earn) – Income tax. The Government uses this money to run the country e.g. build hospitals & schools and pay doctors’ & teachers’ wages. • PRSI (Pay Related Social Insurance) – money paid towards future state paid social welfare benefits e.g. unemployment benefit, old-age pension and maternity benefit.
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Transcript of Junior Cert Business Studies Income
Income
Income is something earned (money coming into the household). The main types of income are regular income, additional income and benefits-in-kind (perks).
Regular income is income that a person receives every week or month e.g. pocket money, wages, salary or unemployment benefit.
Additional income is extra income a person receives occasionally e.g. overtime, Christmas bonus or interest on savings.
Benefit-in-kind or “perks” are extra benefits given by an employer. Official perks are ones that the employer knows about e.g. company car, medical insurance or travelling expenses. Unofficial perks are ones that the employer does not know about e.g. personal phone calls or pens taken home by staff.
Payslip
When you are employed you get a payslip. A payslip shows your name, the period you are getting paid for, gross pay, deductions and the net pay.
Sample Payslip
Name Period Gross Pay Deductions Net Pay (Week 1) Basic Overtime Total PAYE PRSI Savings VHI
David Whyte01/01/2008-07/01/2008 €600 €100
€700 €120 €20 €50
€10 €500
Gross Pay is your total income before any deductions have been taken.Gross Pay = Basic Pay + Overtime + Commission + Bonus.
Net Pay is your take-home pay.Net Pay = Gross Pay – Deductions.
Statutory Deductions are items that must be taken away from your gross pay. They are:• PAYE (Pay As You Earn) – Income tax. The Government uses this money to run
the country e.g. build hospitals & schools and pay doctors’ & teachers’ wages.• PRSI (Pay Related Social Insurance) – money paid towards future state paid
social welfare benefits e.g. unemployment benefit, old-age pension and maternity benefit.
Non-Statutory Deductions (Voluntary Deductions) are items you choose to take away from your gross pay. Examples are:• Savings, VHI (Voluntary Health Insurance) and Trade Union subscription.
Tax Credits – every person who works gets tax credits which reduce the amount of tax you have to pay.
Question 1.
Fill in the following information into Mary Jones’ Payslip: Basic Pay €700, Overtime €100, PAYE €120, PRSI €30, Savings €50 and VHI €25.
Payslip - Mary JonesName Period Gross Pay Deductions Net Pay (Week 1) Basic Overtime Total PAYE PRSI Savings VHI
Mary Jones01/01/2008-07/01/2008
Question 2.
Fill in the following information into Joe Soaps’ Payslip: Basic Pay €600, Overtime €150, PAYE €110, PRSI €28, Trade Union €10 and VHI €25.
Payslip - Joe SoapName Period Gross Pay Deductions Net Pay
(Week 1) Basic Overtime Total PAYE PRSITrade Union VHI
Joe Soap01/01/2008-07/01/2008
