Materials & Prep
Prepare a one-page handout with the sample pay stubs and questions below. Display the summer job calculation in the Opening. Students need pencils and a calculator only if they do not want to compute by hand. No special classroom setup is needed.
Opening
Ask“A summer job pays $15 per hour. You work 8 hours in one week. How much did you earn?” Students calculate $15 × 8 = $120 and briefly explain how they know. Accept a written answer, spoken answer, or show of fingers for the operation.
ConnectSay, “Your $120 calculation is correct. It is the amount you earned before anything is taken out. Many first-time workers expect $120 to appear in their bank account, but a pay stub separates the amount earned from the amount paid to you.” Have students predict whether the bank deposit will be exactly $120 and record their prediction. Do not correct the prediction yet.
Direct instruction
Display: Use this sample pay stub
Employee: Jordan Lee Pay period: June 1–7 Regular hours: 8 Hourly rate: $15.00 Gross pay: $120.00 Federal tax: $8.00 Social Security: $7.44 Medicare: $1.74 State tax: $3.60 Total deductions: $20.78 Net pay: $99.22
DefineGross pay is the total earned before deductions. Deductions are amounts taken from gross pay for taxes or other listed purposes. Net pay is the amount left after deductions, usually the amount sent to the worker’s bank account or given in the check.
Think aloud“First I find gross pay: 8 hours × $15 equals $120. I do not call $120 net pay because the stub lists deductions. Next I add the deductions: $8.00 + $7.44 + $1.74 + $3.60 = $20.78. Finally, I subtract: $120.00 - $20.78 = $99.22. The common mistake is to see the hourly rate and multiply, then stop. That gives gross pay, not the bank deposit.”
ConfrontReturn to the opening prediction. The $120 prediction was the gross pay. Jordan’s net pay is $99.22, so the difference is $20.78. Explain that the exact deductions depend on the worker, pay period, and employer, so students should read the actual stub rather than assume a fixed percentage.
Check for understandingStudents show G for gross or N for net as you read each amount: “$120,” “$20.78,” and “$99.22.” Then ask, “Which amount would Jordan expect to see deposited?” Expected: $99.22, the net pay.
Guided practice
Have students work with a partner on this pay stub
Employee: Maya Ortiz Pay period: June 8–14 Regular hours: 10 Hourly rate: $14.00 Gross pay: $140.00 Federal tax: $9.00 Social Security: $8.68 Medicare: $2.03 State tax: $4.20 Total deductions: $23.91 Net pay: $116.09
PromptPartners answer four questions: 1. How many hours did Maya work? 2. What is her gross pay? 3. How much was deducted? 4. What amount should reach her bank account? Students must point to the matching line on the stub before answering.
Model one decision, then release: “The stub already gives gross pay as $140. I can verify it with 10 × $14. The bank amount is not $140 because deductions are listed. I check net pay, $116.09, and verify it by subtracting $23.91 from $140.”
ScaffoldGive students a three-box organizer labeled Earned before deductions, Taken out, and Left for the worker. Provide the frame: “Gross pay is __ because __. Net pay is __ because gross pay minus deductions equals __.” Students may circle the three key lines on the stub instead of copying all text.
CirculateLook for students treating the hourly rate as net pay or subtracting one deduction instead of total deductions. Ask, “What line tells you the amount left after all listed deductions?”
Independent work
Students independently read this pay stub and complete a short employee explanation: Employee: Samir Patel Pay period: June 15–21 Regular hours: 12 Hourly rate: $13.50 Gross pay: $162.00 Federal tax: $10.00 Social Security: $10.04 Medicare: $2.35 State tax: $4.86 Total deductions: $27.25 Net pay: $134.75
WriteStudents identify the hours, hourly rate, gross pay, total deductions, and net pay. Then they write two or three sentences explaining why Samir should not expect $162.00 in the bank. They must include one calculation: $162.00 - $27.25 = $134.75.
ExtensionStudents compare Samir’s hourly rate with his actual net amount. They calculate the difference between gross and net, then explain why an employee should use net pay when planning what money is available to spend. If finished, students list one question they would ask an employer if a pay stub did not clearly identify a deduction.
SupportRead the stub aloud once, allow students to use the three-box organizer, and provide a calculator after they identify the correct lines. Check the first two entries with students before they continue.
Closing
Exit ticketGive students this brief pay-stub information: “Taylor worked 6 hours at $16 per hour. Gross pay was $96.00. Total deductions were $14.40. Net pay was $81.60.” Students answer: “Which amount is gross pay? Which amount is net pay? In one sentence, explain why the amount deposited is not $96.00.”
Collect the exit ticket and look for all three elements: gross pay identified as $96.00, net pay identified as $81.60, and an explanation that deductions are removed from gross pay before payment.