Activity Title

Interprets wages, deductions, benefits, and taxes.

Goal/Objective

To enhance student’s knowledge of how wages, deductions, benefits, and taxes are interrelated and the importance to each student as an individual.

Lesson Outline

Prior Knowledge Needed

Good math skills, reading skills.

Materials, Text, Media, Handouts

• Form W-4, W-2, paycheck stubs

• Handout on typical benefits companies have to offer

• Calculator

Introduction

The student will be given a class on the different types of benefits they may encounter in the workforce and how the benefits may benefit them.

The student will be shown the proper way to fill out a W-4 form and the tax implication they may incur if done improperly.

The student will practice filling out W-4 form.

The student will be given detailed information on a paycheck stub and learn how to determine their net and gross pay.

The student will utilize a calculator and practice calculating their paycheck.

The student will be given a class on the W-4 and W-2 forms.

Vocabulary

• FICA (taxes)
• 401 K (retirement)
• Medical insurance terms
• Fringe benefits
• Deductions
• Compensation
• Net pay
• Gross pay

Activity

Student will read and become familiar with the paycheck stub and the role of deductions, taxes, wages, and benefits.

Extension / Enrichment Activity

Will calculate gross and net pay.

Evaluation Activity

Student will fill out a W-4 form.

Real-Life Connection

Student will know the difference between gross and net pay and why the difference occurs.

Bridges Accommodations

Will accommodate upon request.

Benchmark Assessment

Student will be given a test over a W-4 and the different vocabulary words presented in the lesson plan.