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TODAY'S AGENDA: We are learning net income and deductions.
                                           1) Complete warm up questions page 36.  
                     2) Watch the following videos.
                                 3) Complete pages 38, 39, 40, and 41.

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2.1 NET INCOME and DEDUCTIONS: Pages 36 - 41

GROSS PAY  is an employee's total earnings ($) before any deductions are taken off.   DEDUCTIONS  are costs such as income tax, EI (Employment Insurace), CPP (Canada Pension Plan) that are removed from total earnings.

Payroll deductions
By law, an employer must deduct the following amounts from your employment earnings:

• Income tax: Federal and Provincial
• Employee contributions to Employment Insurance (EI)
• Employee contributions to the Canada Pension Plan (CPP)

Additional payroll deductions
Finally, your employer may deduct additional items from your pay. For example, you may choose to participate in your company's:

• pension plan
• group insurance plan, or
• RRSP savings plan.

Participation in these programs will reduce your net take-home pay if you opt-in to contribute or they are required.

Gross and Net Income

Canada Pension Plan

Employment Insurance

Useful links...
1) The Canada Pension Plan Retirement Pension (CPP)
2) Employment Insurance (EI)
3) Income Tax: Federal and Provincial