CONSUMER ARITHMET IC

GRADE 9
MS.OSBORNE
WAGES &
SALARY
 SALARY
A salary is the monthly or annual payment workers receive for services
rendered.
Key Terms:
Gross Annual Salary = Gross monthly salary
Net monthly salary = Gross monthly salary – deductions
Salary/Wages deductions are money withheld from an employee’s
paycheck for the payment of taxes, benefits, or garnishments(unpaid
taxes, defaulted student loans,etc)
An allowance is a fixed amount of money given to an employee for the
purpose of performing a specific task by an employer.
 Income tax is a direct tax that a
government levies on the income of its
citizens.

TAXES Tax Free Allowance is the amount of a

person’s income not taxable.

• Taxable Income = Gross Income – Tax Free

Allowance
 REVIEW OF
ASSESSMENT TWO