Lesson ProgressPhase 1 of 6
Phase 1Hook
Hook: Deductions and Net Pay
Activate prior knowledge and introduce the net pay problem
Hook: The Gap Between Gross and Net
Lesson 02 showed Sarah how to calculate Alex's gross pay: $52,000 annual salary ÷ 26 pay periods = $2,000 bi-weekly. But when Alex asks, "What will I actually see in my bank account?" Sarah can't just give that number.
Today answers the question: What does the employee actually take home? This gap between gross and net is where most payroll mistakes happen.
The Two Numbers Every Business Must Track
Employee Focus: Net Pay
What lands in the employee's bank account after all deductions.
$2,000 - deductions = ?
Employer Focus: Total Cost
What the business actually pays, including employer taxes.
$2,000 + employer taxes = ?
Predict: What Does Sarah Need to Calculate?
Before we learn the procedure, predict what information Sarah needs to find:
- Which deductions come OUT of Alex's paycheck?
- How does Sarah know the correct withholding amounts?
- What's the formula that gets from gross to net?
Check Your Starting Point
Confirm you understand the gross-to-net gap before we build the procedure.
1. If Alex earns $3,000 gross pay this month, does Alex take home $3,000?
2. What is the term for the amount an employee actually receives after all deductions?
3. Why does Sarah need to know both what the employee takes home AND what the employer pays?
0 of 3 questions answered