Paycheck Power Slides Paycheck Power
Lesson 1: Gross Pay & Technical Vocabulary
Learning Goals
1 Interpret time cards and calculate Overtime.
2 Compute Piecework & Salary Dividends.
3 Apply Technical Terminology (BMH 10.8).
I Can...
Identify every industrial method for earning income before deductions!
Industry Terms (BMH 10.8)
Gross Pay: Total earnings before taxes.
Pay Period: The timing of checks (Bi-Weekly = 26).
Piecework: Pay based on units produced.
Technical Precision
In payroll, unreadable handwriting or rounding errors create a Discrepancy—an error that triggers an audit.
$10.555 -> $10.56 (Round Up)
Interpreting Graphics: Time Cards
Standard Procedure: Sum all daily hours for the weekly total.
<table class="w-full text-center text-2xl border-collapse"><tbody><tr class="bg-slate-800 text-white font-black"><td class="p-4 border-r border-slate-700">Mon</td><td class="p-4 border-r border-slate-700">Tue</td><td class="p-4 border-r border-slate-700">Wed</td><td class="p-4 border-r border-slate-700">Thu</td><td class="p-4">Fri</td></tr><tr class="font-mono text-4xl bg-white text-slate-900"><td class="p-8 border-r">8.5</td><td class="p-8 border-r">9.0</td><td class="p-8 border-r">8.0</td><td class="p-8 border-r">10.5</td><td class="p-8">8.0</td></tr></tbody></table>
The Overtime Logic
Hours above 40 per week are paid at 1.5x the regular rate.
(Rate x 40) + (OT Rate x OT Hrs)
Production vs. Dividend
Piecework
Payment for each item built. Used to maximize industrial output.
Units x Rate
Salary
Fixed annual earnings divided by pay periods (e.g., Bi-Weekly = 26 checks).
Annual / Periods
The Commission Ladder
Tiered Incentive
"The more you sell, the higher your cut."
Process Flow:
1. Calculate Tier 1
2. Calculate Tier 2
3. Add results together.
Technical Case
First $5,000: 2%
Anything Over: 6%
Sales: $8,000
($5k x .02) + ($3k x .06)
$280.00
Cooperative Skills
Active Listening
M: Manager explains the math logic.
A: Analyst repeats the logic before solving.
Legibility Standard
Is your printing professional? Unreadable numbers are considered industry errors.
Gross Pay Tracker Worksheet Gross Pay Tracker
Standards: BMH 10.7 (Graphics), BMH 10.8 (Terms), Algebra Skills
Name:
Date:
Legibility Standard: numbers must be printed clearly. Unreadable figures trigger a Discrepancy.
Part 1: Technical Time Card Interpretation
Mon Tue Wed Thu Fri Week Total 8.5 9.0 8.0 10.5 8.0
Procedure: Total hours above. Regular pay is first 40 hrs; OT is anything over at 1.5x.
Rate: $18.00/hr
Reg Pay:
$
OT Pay:
$
Gross Total:
$
Part 2: Piecework Basis
Employee builds 32 items at $14.50/unit . Calculate Total Gross.
Procedural math area
Sam's Gross:
$
Part 3: Salary Algebra
Jordan's check is $2,400.00 . Jordan is paid bi-weekly . Solve for Annual Salary (x).
Solve: x / 26 = $2,400
Annual Total:
$
Part 4: Graduated Commission Charts
TECHNICAL SOP: SALES = $12,000
Tier 1: 1st $5k 4%
Tier 2: Over $5k 8%
Step-by-step tier calculations:
Total Comm:
$
Payroll Pro Teacher Guide Payroll Pro Teacher Guide
Unit: The Big Payday | 1-Week Comprehensive Plan
I Can Statements
Gross Pay (BMH 5.1):
Total weekly hours on a technical time card.
Calculate piecework (production) and commission (straight/graduated).
Determine salary dividends per pay period.
Deductions (BMH 5.2):
Calculate Federal WH, FICA (SS 6.2% / Med 1.45%), and SIT.
Compute insurance deductions and final Net Pay.
Communication (BMH 10.6-8)
Use clear, legible handwriting for all technical records.
Interpret directions, graphs, and charts in technical writing.
Demonstrate active listening during peer audit tasks.
Use concise writing to explain Gross vs. Net concepts.
Pacing & Digital Toolkit
Day Instructional Focus Material 1 BMH 5.1: Gross pay structures & time card math. Gross Pay Tracker 2 BMH 5.2: FICA, Federal, and SIT (Graduated Brackets). Net Pay Navigator 3 BMH 5.3: Employer costs (FUTA/SUTA) & total packages. Benefit Blueprint 4 Review: Algebraic solving and peer audit. Review Challenge 5 Unit Exam (Accessible Reading Format). Final Exam
Online Links
IRS Pub 15: bit.ly/irs-employer-guide
ADP Calc: adp.com/tools-and-resources/calculators
Investopedia: investopedia.com/terms/p/payroll.asp
Master Answer Key
L1: Gross Pay Tracker
Time Card: 43.5 Hrs total. (40 Reg / 3.5 OT).
Pay: $720 Reg + $94.50 OT = $814.50 .
Piecework: 32 × $14.50 = $464.00 .
Salary Algebra: x = $62,400. (2,400 × 26).
Graduated Comm: $200 + $560 = $760.00 .
L2: Net Pay Navigator
SIT Straight: $1,400 × 3.5% = $49.00 .
SIT Graduated: $20 (Tier 1) + $40 (Tier 2) = .
Tax Takedown Slides The Tax Takedown
Lesson 2: Deductions & Mandatory Flow
Today's Goals
1 Determine Federal Income Tax (FIT) withholding.
2 Compute FICA (6.2% SS / 1.45% Med).
3 Calculate Straight % vs. Graduated State Tax.
The Net Result
Subtracting mandatory and voluntary cuts from the Gross to find the Net Pay .
FICA: Mandatory Federal Cut
Social Security
Funds retirement and disability. Taken from every dollar earned.
6.2% (x .062)
Medicare
Funds senior healthcare (65+). Constant rate regardless of income.
1.45% (x .0145)
State Income Tax SOPs
Straight Percent
Simple Logic: Gross x Rate = Tax.
Example Rate: 4%
$1,000 x .04 = $40.00
Graduated Basis
Technical Rule: Rate increases as income hits new "brackets."
Technical Process:
1. Calculate each bracket separately.
2. Sum bracket results for final SIT bill.
The Final Net Pay Flow
In (+)
GROSS PAY
Out (-)
TOTAL DEDUCTIONS
Taxes & Insurance
Keep (=)
NET PAY
"Technical Accuracy ensures employees get their fair share and the government gets their legal cut."
Net Pay Navigator Worksheet Net Pay Navigator
I can compute state taxes, insurance, and final net pay. (Standards: BMH 10.7, 10.8)
Name:
Part 1: technical document audit
STUB #442 - LOGISTICS CORP 04.21.2026
EARNINGS (+)
GROSS: $3,100.00
DEDUCTIONS (-)
FEDERAL WH: ($465.00)
FICA - SS: ($192.20)
FICA - MED: ($44.95)
INSURANCE: ($110.00)
NET PAY: $2,287.85
Audit Question 1
Interpret Parentheses: Why are deductions written in ( ) marks?
Audit Question 2
Define Technical WH :
Part 2: Cooperative Peer Review Challenge
2
Task: Graduated State Tax logic
Jordan earns $1,800 gross.
Technical Rule: 2% on first $1,000; 5% on rest.
Show procedural math steps:
JORDAN'S Total SIT:
$
Active Listening Check
Partner A explains the math; Partner B listens. Switch roles. Write the explanation in your own words.
Part 3: Final Certification Ledger
<table class="w-full border-collapse"><tbody class="font-bold text-xl"><tr class="border-b-4 border-slate-100 bg-slate-50"><td class="p-10 font-black text-slate-950 uppercase tracking-tighter">1. Total Gross Pay Amount (+)</td><td class="p-10 text-right font-mono text-emerald-600 text-5xl">$3,100.00</td></tr><tr class="border-b-2 border-slate-50"><td class="p-10 text-slate-400 font-medium italic">2. Mandatory Tax Withholding (-)</td><td class="p-10 text-right font-mono text-red-500 text-3xl">($702.15)</td></tr><tr class="border-b-2 border-slate-50"><td class="p-10 text-slate-400 font-medium italic">3. Voluntary Insurance Deduction (-)</td><td class="p-10 text-right font-mono text-red-500 text-3xl">($110.00)</td></tr><tr class="bg-slate-950 text-white"><td class="p-14 text-right font-black uppercase text-4xl tracking-tighter" colspan="1">CERTIFIED NET CHECK:</td><td class="p-14 text-right font-mono font-black text-7xl text-emerald-400 bg-slate-800 border-l-[12px] border-emerald-500"></td></tr></tbody></table>Tax Deduction Logic Worksheet The Tax Takedown
Lesson 2: Deductions & Mandatory Flow
1 Deduction Vocabulary
Term
Withholding
Term
FICA
Term
Net Pay
2 FICA Computation (BMH 5.2)
Gross Earnings: $1,200.00
Social Security: 6.2%
CALCULATE HERE
$
Medicare: 1.45%
CALCULATE HERE
$
Part 3: The Algebraic Take-Home Audit
Case #104: Auditor Initial Required
Employee Technical Gross $2,250.00
Mandatory Withholding (Fed+SIT+FICA):
$
Voluntary Group Insurance:
$
PROCEDURAL RESULT: FINAL NET PAY
$
Auditor Signature:
Bonus Bundle Slides The Bonus Bundle
Lesson 3: Fringe Benefits & Employer Costs
Employer Perspective
1 Understand "Fringe Benefits" (Health, 401k, etc).
2 Calculate Employer-only taxes (FUTA/SUTA).
3 Analyze the "Total Compensation Package."
Did you know?
An employee often costs a company 1.25 to 1.4 times their actual salary because of taxes and benefits!
What are Fringe Benefits?
Extra compensations provided to employees in addition to their normal wages or salaries.
Common Examples:
Health Insurance
Retirement (401k)
Paid Vacation
Life Insurance
Tuition Help
Gym Membership
Why offer them?
Attract & keep talent
Improve employee morale
The Hidden Bill
FICA Match
Employers must pay the exact same amount as the employee.
6.2% SS
1.45% Medicare
FUTA
Federal Unemployment Tax Act. Paid only by employers.
0.6%
(First $7,000 only)
SUTA
State Unemployment Tax Act. Varies by state and industry.
Varies
(e.g., 2.7% - 5.4%)
Total Labor Cost Formula:
Gross Pay + Employer Taxes + Benefits Cost
Real Life Choice
Job Offer A
$50,000
Base Salary Only
No benefits provided
BETTER VALUE?
Job Offer B
$42,000
Base Salary
Health Insurance ($8k)
Retirement Match
Which is actually worth more? Let's find out.
Benefit Blueprint Activity Benefit Blueprint
Cooperative Analysis & Technical Decision Making (BMH 10.6, 10.7, 10.8)
Consultant A:
Consultant B:
Cooperative Business Consulting
Work cooperatively to advise a candidate. Partner A calculates; Partner B audits for accuracy. Use professional discussion skills to decide on the best career path.
Part 1: The Hidden Cost Audit
Technical Basis: Employee earning $40,000.00/year . Calculate the mandatory employer-side taxes exactly.
FICA Match (7.65%)
$
FUTA (.6% on 1st $7k)
$
SUTA (3.4% on 1st $7k)
$
Total Labor Cost (C):
Algebraic Model: C = Salary + Taxes + Benefits
$
Wage Package Technical Evaluation
A
High Salary
ANNUAL BASE: $65,000
HEALTH VAL: $0
LEAVE VAL: $0
Package Gross Value:
$
B
Benefit Rich
ANNUAL BASE: $54,000
HEALTH VAL: +$9,500
LEAVE VAL: +$3,200
Package Gross Value:
$
Part 3: Formal Recommendation Memo (BMH 10.6)
Standard 10.6: Use clear and concise writing to advise the applicant. Explain why cash is not the only factor in professional compensation.
MEMO: COMPENSATION ANALYSIS
Payday Review Challenge Payday Review Challenge
Essential Skills & Procedural Audit Refresher
1 Technical Definitions (BMH 10.8)
Gross vs. Net
Describe the difference in 1 concise sentence.
FICA Definition
Identify the 2 taxes that make up FICA.
2 Calculation Gauntlet (Algebra)
Audit #1: Variable Recovery
Worker earns $22.00/hr . Total Gross Pay: $880.00 . Solve for hours (h).
Technical Equation
22.00 × h = 880
SHOW STEPS BELOW
Value of h:
Cooperative skills audit
Active Listening Standard: Partner A explains the tax logic; Partner B verifies legibility. Both initial the final check to confirm business accuracy.
Gross Earnings $4,000.00
Total Taxes (WH):
$
Insurance Premium:
$
Audited Result: Final Net Pay
$
Auditor Ints:
Legibility Check:
Big Payday Final Exam Payroll Certification Exam
Unit Mastery Assessment | Standards 5.1 - 5.3 Integrated
Name
Date
Technical Instructions:
Read scenarios carefully. Keywords are BOLDED . Print numbers CLEARLY ; unreadable numbers are discrepancies (incorrect).
Section 1: Technical Analysis
1
Interpret the Time Card Chart . Calculate the Total Week Hours .
Mon
8.0
Tue
8.5
Wed
9.5
Thu
8.0
Fri
8.0
Week Total:
2
What is the Industry Term for money earned BEFORE taxes?
Net Pay
Gross Pay
Section 2: Pay Computations
3
Annual Salary is divided by 26 pay periods . Solve for the one-check amount (x) if the annual total is $52,000.00 .
$52,000 / 26 = x
Solve for Check Amount
Value of x:
$
4
Employee built 40 chairs . Rate: $1.25 per chair . Calculate Total Pay .
Procedural Work Space
Gross Amount:
$
Section 3: Mandatory Deductions
5
Compute Graduated State Tax: Gross = $1,800.00
1st $1,000 @ 2%: $
Amt. Over @ 5%: $
Final SIT Total:
$
6
Calculate Social Security (FICA) withholding for a gross pay of $1,000.00 .
(Standard Rate = 6.2% ).
Scratchpad Area
Tax Amount:
$
Section 4: Technical Writing
7
Explain the technical difference between Gross Pay and Net Pay to a new coworker. Use concise writing.
Formal Technical Memo