do now…
DESCRIPTION
Do Now…. Carl worked 12 hours for an hourly rate of $7.50 The Federal Tax Rate is 20% The State Tax Rate is 10% FICA is always 7.65% What is Carl’s Net Pay?. Computer Whiz Carl works at Circuit City. I think I know, check my answer. Click here is your answer was correct. - PowerPoint PPT PresentationTRANSCRIPT
![Page 1: Do Now…](https://reader036.vdocuments.us/reader036/viewer/2022081520/56815e99550346895dcd2aca/html5/thumbnails/1.jpg)
Do Now…Computer Whiz Carl works at Circuit City.
I think I know,
check my answer
• Carl worked 12 hours for an hourly rate of $7.50•The Federal Tax Rate is 20%•The State Tax Rate is 10%• FICA is always 7.65%
What is Carl’s Net Pay?
![Page 2: Do Now…](https://reader036.vdocuments.us/reader036/viewer/2022081520/56815e99550346895dcd2aca/html5/thumbnails/2.jpg)
Carl’s Net Pay is $56.11Click here is your answer was correct.
Oops, I guess I need help.
Click here.
![Page 3: Do Now…](https://reader036.vdocuments.us/reader036/viewer/2022081520/56815e99550346895dcd2aca/html5/thumbnails/3.jpg)
•Carl’s Gross Pay is $90.00• $7.5 x 12 hours = $90.00
•His Federal Tax Deduction is $18.00• $90.00 x 20% = $18.00
•His State Tax Deduction is $9.00• $90.00 x 10% = $9.00
•His FICA Deduction is $6.89• $90.00 x 7.65% = $6.89
Carl’s Net Pay
$90.00 - $18.00 - $9.00 - $6.89 = $56.11Carl’s Net Pay is $56.11
![Page 4: Do Now…](https://reader036.vdocuments.us/reader036/viewer/2022081520/56815e99550346895dcd2aca/html5/thumbnails/4.jpg)
REQUIRED DEDUCTIONS
Money subtracted from your gross pay for taxes by the government, also called payroll taxes:• Federal Taxes• State Taxes• FICA (Social Security and Medicare)
![Page 5: Do Now…](https://reader036.vdocuments.us/reader036/viewer/2022081520/56815e99550346895dcd2aca/html5/thumbnails/5.jpg)
Calculating Federal Tax Deduction
Gross Pay x Federal Tax Rate = Federal Tax Deduction
•Johnny’s Gross Pay is $50.00•Johnny’s Federal Tax Rate is 20%•Johnny’s Federal Tax Deduction is $10.00
$50.00 x 20% = $10.00$50.00 x .20 = $10.00
NEXT
![Page 6: Do Now…](https://reader036.vdocuments.us/reader036/viewer/2022081520/56815e99550346895dcd2aca/html5/thumbnails/6.jpg)
Diligent David’s Gross Pay is $48.00
I think I know,
check my answer
Show me how to determine David’s federal tax deduction
The Federal Tax Rate is 20%What is David’s
Federal Tax Deduction?
![Page 7: Do Now…](https://reader036.vdocuments.us/reader036/viewer/2022081520/56815e99550346895dcd2aca/html5/thumbnails/7.jpg)
David’s Federal Tax Deduction is
$9.60Click here is your answer was correct.
Oops, I guess I need help.
Click here.
![Page 8: Do Now…](https://reader036.vdocuments.us/reader036/viewer/2022081520/56815e99550346895dcd2aca/html5/thumbnails/8.jpg)
20% or .20 means 20¢ out of every dollar earned, goes to Uncle Sam.
There are additional deductions to be subtracted from gross pay, let’s calculate State Taxes and FICA…
20¢+ 20¢+ 20¢+ 20¢+ 20¢+ 20¢+ 20¢+ 20¢+
20¢+ 20¢+ 20¢+ 20¢+ 20¢+ 20¢+ 20¢+ 20¢+
20¢+ 20¢+ 20¢+ 20¢+ 20¢+ 20¢+ 20¢+ 20¢+
20¢+ 20¢+ 20¢+ 20¢+ 20¢+ 20¢+ 20¢+ 20¢+
20¢+ 20¢+ 20¢+ 20¢+ 20¢+ 20¢+ 20¢+ 20¢+
20¢+ 20¢+ 20¢+ 20¢+ 20¢+ 20¢+ 20¢+ 20¢ } $9.60
![Page 9: Do Now…](https://reader036.vdocuments.us/reader036/viewer/2022081520/56815e99550346895dcd2aca/html5/thumbnails/9.jpg)
REQUIRED DEDUCTIONS
STATE TAXES•The amount subtracted from gross pay for taxes is determined by the state government.
•It is a percentage of gross pay based on a person’s total wages and living situation (married, single, children, etc.).
•The state tax deduction is calculated by multiplying the government determined tax rate by gross pay.
![Page 10: Do Now…](https://reader036.vdocuments.us/reader036/viewer/2022081520/56815e99550346895dcd2aca/html5/thumbnails/10.jpg)
Calculating State Tax Deduction
Gross Pay x State Tax Rate = State Tax Deduction
•Johnny’s Gross Pay is $50.00•Johnny’s State Tax Rate is 15%•Johnny’s State Tax Deduction is $7.50
$50.00 x 15% = $7.50$50.00 x .15 = $7.50
NEXT
![Page 11: Do Now…](https://reader036.vdocuments.us/reader036/viewer/2022081520/56815e99550346895dcd2aca/html5/thumbnails/11.jpg)
Diligent David’s Gross Pay is $48.00
I think I know,
check my answer
Show me how to determine David’s state tax deduction
The State Tax Rate is 18%What is David’s State
Tax Deduction?
![Page 12: Do Now…](https://reader036.vdocuments.us/reader036/viewer/2022081520/56815e99550346895dcd2aca/html5/thumbnails/12.jpg)
David’s State Tax
Deduction is
$8.64Click here is your answer was correct.
Oops, I guess I need help.
Click here.
![Page 13: Do Now…](https://reader036.vdocuments.us/reader036/viewer/2022081520/56815e99550346895dcd2aca/html5/thumbnails/13.jpg)
There is one more deduction to be subtracted from gross pay, let’s learn about FICA…
18% or .18 means 18¢ out of every dollar earned, goes to Uncle Sam.
} $8.64$48.00 x 18%
OR
$48.00 x .18
![Page 14: Do Now…](https://reader036.vdocuments.us/reader036/viewer/2022081520/56815e99550346895dcd2aca/html5/thumbnails/14.jpg)
REQUIRED DEDUCTIONS
FICA•FICA stands for Federal Insurance Contributions Act. This law was created to pay for Social Security and Medicare.
• Social Security – Wages paid to retired people by the government based on how much they earned during their working years.
• Medicare – Government sponsored health insurance for retired people.
The amount subtracted from gross pay for FICA is always at a rate of 7.65% (6.2% for Social Security and 1.45% for Medicare)
![Page 15: Do Now…](https://reader036.vdocuments.us/reader036/viewer/2022081520/56815e99550346895dcd2aca/html5/thumbnails/15.jpg)
Calculating FICA Deduction
Gross Pay x FICA Percentage = FICA Deduction
•Johnny’s Gross Pay is $50.00•The FICA Rate is 7.65%•Johnny’s FICA Deduction is $3.83
$50.00 x 7.65% = $3.83$50.00 x .0765 = $3.83
![Page 16: Do Now…](https://reader036.vdocuments.us/reader036/viewer/2022081520/56815e99550346895dcd2aca/html5/thumbnails/16.jpg)
Diligent David’s Gross Pay is $48.00
I think I know,
check my answer
Show me how to determine David’s FICA deduction
What is David’s FICA Deduction?
![Page 17: Do Now…](https://reader036.vdocuments.us/reader036/viewer/2022081520/56815e99550346895dcd2aca/html5/thumbnails/17.jpg)
David’s FICA Deduction is
$3.67After all these deductions, is there any money left for me?
Oops, I guess I need help.
Click here.
Click here is your answer was correct.
![Page 18: Do Now…](https://reader036.vdocuments.us/reader036/viewer/2022081520/56815e99550346895dcd2aca/html5/thumbnails/18.jpg)
$48.00 x 7.65% = $3.67$48.00 x .0765 = $3.67
![Page 19: Do Now…](https://reader036.vdocuments.us/reader036/viewer/2022081520/56815e99550346895dcd2aca/html5/thumbnails/19.jpg)
After all these deductions, is there any money left for me?
NET PAY = the money left after all deductions are subtracted from gross pay.
![Page 20: Do Now…](https://reader036.vdocuments.us/reader036/viewer/2022081520/56815e99550346895dcd2aca/html5/thumbnails/20.jpg)
Gross Pay - Federal, State and FICA Deductions = Net Pay
•Johnny’s Gross Pay is $50.00•Johnny’s Federal Tax Deduction is $10.00•Johnny’s State Tax Deduction is $7.50•Johnny’s FICA Deduction is $3.83
$50.00 - $10.00 - $7.50 - $3.83 = $28.67
Calculating Net Pay: the money after deductions,
what you actually bring home…..
![Page 21: Do Now…](https://reader036.vdocuments.us/reader036/viewer/2022081520/56815e99550346895dcd2aca/html5/thumbnails/21.jpg)
What is Diligent David’s Net Pay?
I think I know,
check my answer
Show me how to determine David’s Net Pay
•His Gross Pay is $48.00•His Federal Tax Deduction is $9.60•His State Tax Deduction is $8.64•His FICA Deduction is $3.67
![Page 22: Do Now…](https://reader036.vdocuments.us/reader036/viewer/2022081520/56815e99550346895dcd2aca/html5/thumbnails/22.jpg)
David’s Net Pay is $26.09 He will have $26.09 to spend after all required deductions have been subtracted from his gross pay.
Oops, I guess I need help.
Click here.
Click here is your answer was correct.
![Page 23: Do Now…](https://reader036.vdocuments.us/reader036/viewer/2022081520/56815e99550346895dcd2aca/html5/thumbnails/23.jpg)
•David’s Gross Pay is $48.00• $8.00 x 6 hours = $48.00
•His Federal Tax Deduction is $9.60
• $48.00 x 20% = $9.60•His State Tax Deduction is $8.64
• $48.00 x 18% = $8.64•His FICA Deduction is $3.67
• $48.00 x 7.65% = $3.67
David’s Net Pay
NEXT
![Page 24: Do Now…](https://reader036.vdocuments.us/reader036/viewer/2022081520/56815e99550346895dcd2aca/html5/thumbnails/24.jpg)
David’s Net Pay = $26.09
$48.00 - $9.60 - $8.64 - $3.67 = $26.09
Gross Pay - Federal Tax - State Tax - FICA = Net Pay