Job choices

Assignment

• Work on a5q1• Answer the questions on a piece of paper as

we go along. • Fill out the chart with your math answers

Question 1

• You are looking at three different jobs in the educational sector of publishing.– One is a full time position as an editor that pays a

salary of $37,000 per year– One is a full time position as an online designer

that pays an hourly wage of $26.50 an hour – you work five days a week, eight hours a day

– One is a sales representative job that pays 5% commission. Reps usually sell $100,000 a month in textbook sales.

Questions 1a-1c

• Record the income information• Calculate the annual gross income for each job• Calculate the monthly gross income for each

job• 1d – on a piece of paper answer the following

question – based on the current information, which job would you currently take and why?

• Be prepared to justify to the class

Taxes 2a-2e

• You live in a state that does not require state income tax (Texas and Nevada are two such states)

• You have to pay Social Security tax on your income (6.2%), Medicare tax (1.45%), and Federal tax (15%).

• Calculate the taxes for each and record• Find the after tax income

2f - Question to answer

• You know that you need to have a net income (after taxes) of at least $3,000 to cover all expenses for the month

• Based on this information, can you still accept all three jobs? Why or why not?

• Which job will you take now based on this new information?

Benefits

• Vacation and sick leave are add ins to jobs – some have them and some do not – if you do not have either, then time off will cost you money

• Editor has 2 weeks of paid vacation and 5 days of paid sick leave a year

• Designer has five paid vacation days and 3 days paid sick leave a year

• The sales rep has no paid vacation and no paid sick days

3c - Question to answer

• Knowing this information, which job would you take and why?

Costs to you for vacation and sick leave

• You plan on taking 2 weeks of vacation a year regardless of the job –

• You usually take an average of 4 sick days a year• Question – 3d – knowing this information, and

ignoring the $3,000 rule, which job would you take and why?

• Is there an added cost to any of the jobs based on this information? What is the cost for each job?

Insurance costs

• You live in a state where insurance costs come out after taxes –

• The editor has health insurance paid by the company, life insurance at $35.00 a month, and a retirement plan paid in full by the company

• The designer has health insurance paid by the company, life insurance at $35.00 a month, and a retirement plan at 3% calculated on after tax income

• The sales rep has health insurance paid by the company, life insurance paid by the company and retirement plan at $500.00 a month

4 f - Question to answer

• Based on this information, which job to do now plan to take?

4 g - Additional needs

• Are there any other factors that could affect the accuracy of the final net income?

• Are there any other factors that you may want to consider when choosing which job you would take? What are they and why are they important?

Job scenario 2

• You are considering two job offers– Full time permanent position that pays an annual

income of $55,000– A full time contract position that pays $29.00 an

hour – Fill in the chart for questions 1a-1c

1 d - Question to answer

• Base on the gross monthly income, which job will you take and why?

Taxes• Federal taxes: 15%• State taxes: 7%• FICA: 7.65%• **contract jobs are self- employed. You are

required to pay FICA for yourself and for the employer.

• Calculate the taxes and after tax income in boxes 2a-2f

2 g - Question to answer

• Based on this new information and the after tax income levels, which job will you now take and why?

Benefits

• Permanent position – health care cost $95.00 a month, 4% retirement plan after tax calculated

• Contract position – health care cost of $150.00 a month, 8% retirement plan after tax calculated

• Calculate the benefit contributions from your check in boxes 3a-3d

3 e - Question to answer

• Based on the final net income and all of the previous information, which job will you take and why?

• Did you change your mind throughout the process? What items made you change your mind?

• Turn in the chart and the paper with the answers to all questions attached to each other.

Journal 7

• three people are paid $7.00 an hour. They each get a gross pay of $280.00 for their work.

• 1st person - federal tax at 15%• 2nd person - federal tax at 10%• 3rd person - federal tax at 3%.• Calculate their tax, and their take home

after tax for each person - • Why are the three people at different rates?

Discussion

• Discuss with your neighbor the reasons you came up with for the different rates.

Answer the following on a separate piece of paper?

• What are things that are important to you for considering a job?

• Rank the benefits that you listed• What items is a must in order to take the job?• What items are not as critical?