Topic 1 Flashcards
(24 cards)
Wage
earnings based on hours worked (maccas workers)
Salary
fixed amount, regardless of hours (nurses, teachers)
1 year =
= 365days or 366 if leap
= 12 month
= 52 weeks
= 26 fortnights
Annual leave loading
extra payment for taking leave, added to the normal pay – usually for a holiday.
Annual leave loading Payment
17.5% x normal pay x number of weeks leave
Bonus
extra one-off payment used as an incentive, in addition to the normal income.
Overtime
work beyond normal working day
Time-and-a-half
normal rate x 1.5
Double time
normal rate x 2
Special allowance
payment for difficult/dangerous working conditions, or when they have to buy something for work
Commission
percentage of the value of the goods sold
Retainer
small payment in addition to the commission.
Piecework
payment for work completed
Piecework Payment
number of items x amount paid per item
Royalty
payment for the use of intellectual property
Royalty Payment
percentage of goods sold or profit received.
Government income
pension, allowance or benefit
Allowable deductions
deductions allowed by the Australian Taxation Office (ATO) eg.
* Work-related expenses
* Self-education expenses
* Travel expenses
* Car expenses
* Clothing expenses
* Tools
How do most people pay tax?
with a PAYG system (pay as you go) that deducts automatically from their wage - can end up above or below the amount they need to pay
taxable income
your gross income (including wage/salary, profits from shares, interest, any type of payment) minus allowable deductions.
Deductions
regular amount of money subtracted from a person’s wage/salary
Net pay
Gross pay – deductions.
MEDICARE LEVY
Medicare levy is calculated at a rate of 2% of taxable income.