Year+7+-+Week+4+-+HWOO

ONLY IN OUR DREAMS ARE WE FREE. THE REST OF THE TIME WE NEED WAGES.

Find out the tax rate and income breaks, ACC earners levy, new entrants minimum wage and the adult minimum wages for the current tax year in New Zealand.

Using a spreadsheet, work out the tax and ACC earners levy and hence find the yearly, monthly and weekly take home pay for the following scenarios:

A. A person working 40 hours per week at the 'starting-out' minimum wage.

B. A person working 40 hours per week at the adult minimum wage.

C. Choose at least three different classifications of jobs (you may refer to www.seek.co.nz or any other reliable source) and calculate the tax and ACC earners levy as well as the take home yearly, monthly and weekly pay for the minimum, average and maximum salary for each of your chosen job classifications.

Using the information from the previous tasks make a comparison between these jobs in terms of the percentage of salary which is taken home for each scenario.

EXTENSION

Finally investigate how this might change if any of the following happened:

i) The adult minimum wage increased to $20 her hour

ii) Each person was allowed to earn $5,000 before paying any tax at all and then paid tax on the next $14,000 at the current lowest rate of tax etc.

iii) An additional higher rate of tax of 50% was introduced for earnings over $100,000

You may also consider any other appropriate changes and consider what the effect might be.

​Work is due Friday 17th October