Identifying and classifying income What is income Income
- Slides: 8
Identifying and classifying income
What is income? Income is money that you receive. • Earned income: the amount of money an individual or household earns or receives in return for making something or providing a service • Unearned income: the amount of money a person or household receives from the state e/g/ Child benefit / job seekers allowance
Benefit in kind A payment from your employer in a form other than cash e. g. free meals, free parking space or company car
Source of income for…. Individual / household Employed person on low income Parent of children under 18 Unemployed person Student Retired person Source of income
• Self-employed people set up their won business and work for themselves for payment • E. g. dentists, farmers, hairdressers, plumbers etc • Employee is a person who works for someone else for payment and is paid a wage or a salary
• Time rate: the wage is paid depending on how many hours worked. • Minimum wage: by law an employee must be paid the minimum wage of € 9. 15 an hour. Those under 18 receive € 6. 41 per hour. • Piece rate: employees are paid for the quantity of goods produced or service provided.
Classification of income • Regular income: income you are sure of receiving e. g pocket money, net wage, child benefit • Irregular income: income you may or may not receive e. g birthday money, raffle win, overtime net wage, bonus
Recording income • See page 23/ 24 to work this out
