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A2.2 · Estimate and compare payroll deduction percentages

Learn to estimate and compare payroll deduction percentages through clear examples and targeted practice.

Ontario Grade 11 Mathematics

Earning and Purchasing

A practical guide to reading sample pay information

A pay record can show how much you earned before deductions and how much was taken off. A dollar amount alone does not tell the whole story. A CAD 60 deduction is a larger share of CAD 600 gross pay than of CAD 1,200 gross pay. In this lesson, you will estimate and compare deductions as percentages of gross pay. All pay records and amounts are made-up examples for learning; actual deductions depend on a worker’s situation.

What you will learn

Identify gross pay, a payroll deduction, and net pay in a simple pay record.
Estimate a deduction as a percentage of gross pay.
Use a calculator or spreadsheet to compare deduction percentages fairly.

1. Read the pay information

Gross pay is the amount earned before deductions are taken off. For example, it may include pay for regular hours and other pay shown on a pay record. A payroll deduction is an amount taken from gross pay. Net pay is what remains after the listed deductions are taken off. It is sometimes called take-home pay.

For this topic, focus on the deduction amount and the gross pay for the same pay period. Do not compare a weekly deduction with a monthly gross-pay amount. The time periods must match for a fair comparison.

A pay record may list different kinds of deductions. This lesson does not decide whether a particular deduction is correct or explain how an employer calculates it. It shows how to estimate and compare the deduction amounts as shares of gross pay.

Use gross pay as the comparison amount.
Match the deduction and gross pay to the same pay period.
A percentage describes a share out of every 100.

2. Estimate a deduction percentage

To estimate a deduction percentage, compare the deduction with gross pay. Divide the deduction by gross pay, then multiply by 100. Multiplying by 100 changes a decimal share into a percentage. The result tells you about how many dollars are deducted for each CAD 100 of gross pay.

Before calculating, make a rough estimate. Ask whether the deduction seems close to one-tenth, one-twentieth, or another familiar share of gross pay. For instance, CAD 50 out of CAD 1,000 is one-twentieth, or about 5%. A rough estimate helps you notice a calculator-entry mistake.

A calculator can give a more precise result. Enter the deduction divided by gross pay, then multiply by 100. Round sensibly, often to one decimal place when comparing sample pay records. Keep the unrounded amount until the final step if you are doing several calculations.

A spreadsheet can do the same repeated calculation. Put gross pay in one column and the deduction in another. In a third column, divide the deduction cell by the gross-pay cell and multiply by 100. If the spreadsheet is set to display a percentage, follow its instructions for percentage formatting; do not multiply by 100 and also apply percentage formatting unless the spreadsheet setup calls for it.

p=\frac{D}{G}\times100\%

Estimate first, then use a calculator or spreadsheet to check.
The deduction is the amount being compared; gross pay is the reference amount.
Use the same method for each pay record.

3. Compare percentages fairly

A larger deduction in dollars is not always a larger deduction percentage. One worker may have higher gross pay and a higher dollar deduction, but a smaller share taken off. Calculate each percentage before deciding which share is larger.

For a fair comparison, make sure both records cover the same kind of time period, such as one week or two weeks. Then compare the estimated percentages. A difference of a few tenths of a percentage point may be small, so report the rounded values clearly rather than treating them as exact.

You can also compare total deductions when a record lists more than one. Add the listed deduction amounts for that pay period, then compare the total with gross pay. This gives an estimate of the share of gross pay taken by those listed deductions together. It does not explain why each amount was deducted.

Compare percentages, not just dollar amounts.
Keep the pay periods consistent.
State whether you are comparing one deduction or the total of listed deductions.

4. Use the estimate to make a decision

Suppose you are checking two sample pay records. First, identify gross pay and the deduction amount on each. Next, estimate each percentage using a familiar fraction. Then calculate both percentages in the same way and round to the same number of decimal places.

Finally, say what the comparison means in plain language. For example: “The deduction on Record A is about 4.5% of gross pay, while the deduction on Record B is about 5.0%. Record B has the larger deduction as a share of gross pay.” This statement compares the share; it does not claim that the dollar deduction is larger or that either record is wrong.

If the estimates are close, check the arithmetic and rounding before making a conclusion. A calculator or spreadsheet is useful for checking, but you still need to enter the correct amounts and explain what the result compares.

Give the percentage and identify what it describes.
Use consistent rounding for the values being compared.
A percentage comparison is not a judgment about whether a deduction is correct.

A simple comparison record

Record	Gross pay	Deduction	Estimated percentage
A	CAD 1,200	CAD 54	4.5%
B	CAD 1,500	CAD 75	5.0%

Worked example

Compare one deduction on two records

Two sample biweekly pay records show gross pay of CAD 1,200 and a deduction of CAD 54 on Record A. Record B shows gross pay of CAD 1,500 and a deduction of CAD 75. Estimate and compare the deduction percentages.

Estimate the shares
For Record A, 5% of CAD 1,200 would be CAD 60, so a CAD 54 deduction should be a little less than 5%. For Record B, 5% of CAD 1,500 is CAD 75, so its deduction is exactly 5%.
$0.05\times1{,}200=60$
Calculate Record A
Divide CAD 54 by CAD 1,200 to find the share of gross pay. Multiply by 100 to express that share as a percentage.
$\frac{54}{1{,}200}\times100\%=4.5\%$
Calculate Record B
Use the same steps for Record B so that the comparison is consistent.
$\frac{75}{1{,}500}\times100\%=5\%$

Answer: Record A’s deduction is 4.5% of gross pay. Record B’s is 5.0%. Record B has the larger deduction percentage by 0.5 percentage points.

Check: Five percent of CAD 1,500 is CAD 75, which matches Record B. Five percent of CAD 1,200 is CAD 60, so CAD 54 is 4.5% of that gross pay.

Worked example

Compare total listed deductions

A sample weekly record shows gross pay of CAD 840. It lists two deductions: CAD 34 and CAD 8. Estimate the total listed deductions as a percentage of gross pay.

Find the total
Add the two listed deductions because the question asks about them together. This total describes only the deductions shown in this example.
$34+8=42$
Make a rough estimate
Five percent of CAD 840 is CAD 42. Since that equals the total listed deductions, the percentage is exactly 5% for these sample amounts.
$0.05\times840=42$
Check with the percentage calculation
Divide the total deductions by gross pay and multiply by 100. The result confirms the estimate.
$\frac{42}{840}\times100\%=5\%$

Answer: The two listed deductions together are 5% of the weekly gross pay.

Check: CAD 42 is one-twentieth of CAD 840, and one-twentieth is 5%.

Common mistakes and how to avoid them

Dividing gross pay by the deduction.

Correction: Divide the deduction by gross pay. The deduction is the part, and gross pay is the amount it is a part of.

Choosing the record with the larger dollar deduction as the larger percentage.

Correction: Calculate both percentages. Different gross-pay amounts can make the larger dollar deduction a smaller share.

Comparing amounts from different pay periods.

Correction: Use gross pay and deductions from matching periods before comparing.

Rounding one percentage to a whole number and the other to a decimal.

Correction: Round both results to the same place so the comparison is clear.

Lesson summary

Gross pay is pay before deductions; net pay is what remains after deductions.
Estimate a deduction percentage by comparing the deduction with gross pay.
Calculate each record the same way, using matching pay periods.
Compare percentages to compare shares; do not rely on dollar amounts alone.

Check your understanding

Question 1

A sample pay record has gross pay of CAD 900 and a deduction of CAD 45. What percentage of gross pay is the deduction?

2%
5%
20%
correctIndex": 1, "explanation": "CAD 45 is one-twentieth of CAD 900, so the deduction is 5% of gross pay."

Show answer and explanation

CAD 45 is one-twentieth of CAD 900, so the deduction is 5% of gross pay.

Question 2

Record C has gross pay of CAD 1,000 and a deduction of CAD 48. Record D has gross pay of CAD 800 and a deduction of CAD 40. Which deduction is the larger share of gross pay?

Record C, because CAD 48 is the larger amount
Record D, because its deduction is 5%, compared with 4.8% for Record C
They are equal because the dollar amounts are close
correctIndex": 1, "explanation": "Record C is 48/1,000 × 100 = 4.8%. Record D is 40/800 × 100 = 5%. Record D is the larger share."

Show answer and explanation

Record D, because its deduction is 5%, compared with 4.8% for Record C

Record C is 4.8% and Record D is 5%, so Record D is the larger share.

Key terms

Gross pay: Pay earned before deductions are taken off.
Payroll deduction: An amount taken from gross pay and listed on a pay record.
Net pay: The amount left after deductions are taken off gross pay.
Percentage: A way to describe a share out of 100.

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View the complete Ontario Grade 11 Mathematics learning path

About this lesson

Published by DoAssignment. This AI-assisted lesson follows Ontario Grade 11 Mathematics (MEL3E), expectation A2.2. It is a study resource, not an official curriculum publication.

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