Remember: Income tax is a share of pay that comes off first. What is left is take-home pay, so plan with take-home, not gross.
Read and answer
Read the story first, then answer.
Ana's pay envelopeAna works at the Brookfield bakery and earns fifty coins a week. On Friday the baker hands her an envelope, and she counts only forty coins. Where did the other ten go? Her pay slip explains. Fifty coins is her gross pay, the pay before tax. Ten coins came off as income tax, a share of her pay, and the forty that are left are her take-home pay. Brookfield has one simple rule: two coins out of every ten go to the town pot. Fifty is five groups of ten, and five groups of two make ten coins. The baker sends the tax straight to the pot before the envelope is filled, so the ten coins were never in it. The pot pays for the bridge, the school and the lamps on Main Street. Leo sweeps the bakery for thirty coins a week, and the same rule applies to him. Later Ana gets a raise, to sixty coins a week.
1
Look at Ana's pay slip. What do people call the pay before tax?
Gross payTake-home payIncome tax
2
Brookfield's rule is 2 coins out of every 10. Ana earns 50 coins, which is 5 groups of ten. Her tax is coins.
3
The baker puts Ana's 10 coins of tax in her envelope, and she hands them to the pot herself.
TrueFalse
4
Leo sweeps the bakery for 30 coins a week, and the same rule applies. How many coins does Leo keep?
6 coins28 coins24 coins
Tax, take-home and the pot
5
Number what happens to Ana's pay.
Forty coins arrive in Ana's envelope
Ana earns fifty coins at the bakery
The baker sends ten coins to the pot
6
Join each word to what it means.
1Gross pay
2Income tax
3Take-home pay
4The town pot
Apay before tax
Bpays for the bridge and school
Ca share of pay that comes off
Dwhat is left after tax
7
What does the town pot pay for? Circle every one.
The bridgeAna's lunchThe lamps on Main StreetThe baker's flourThe school
8
Ana's raise: look at the table. When she earns 60 coins, her take-home pay is coins.
9
Ana's take-home pay goes from 40 coins to 48 coins after her raise. What is true?
She keeps 8 fewer coinsShe keeps 12 more coinsShe keeps 8 more coins
Fix it and think
10
Ana says: I will plan my week with my 60 coins of gross pay, because that is what I earn. Is Ana right?
YesNo
11
Ana pays 10 coins of tax and Leo pays 6. They pay the same share. Why does Ana pay more coins?
Ana earns more, so the same share is more coinsThe baker likes Leo betterAna's tax rule is different
12
Write one question you would ask a grown-up about a pay slip.
13
Draw a pay slip with three boxes: pay before tax, the tax, and take-home pay.
Scan the code at the top to mark this sheet on screenTake a photo of your answers or type them. It is marked for you automatically, and your score is kept.