Download - Warm up
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Warm up
• Joe’s employer pays 60% of his annual medical insurance premiums. The total annual cost per employee is $5,000. Joe is paid bi-weekly. What dollar amount should be deducted from Joe’s bi-weekly paycheck?
• 100% - 60% = 40%• 5000 x .40 = $2000• 2000 / 26 = $76.92
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net payThe amount of money left after your employer subtracts all tax withholdings and personal deductions from your gross pay (also called net income or take-home pay).
Lesson Objective Calculate net pay per pay period.
Content Vocabulary
net pay
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Net Pay
Pay Period 6/11/2004-7/11/2004$1,502.10$250.35Totals
$503.46$117.72$636.00$244.92$0.00$0.00
$106.00$40.82$83.91$19.62$0.00$0.00
Federal WithholdingState WithholdingFed OASDI/ EE or Social SecurityFed MED/ EE or MedicareMedical401K
$1,353.33
Year-to-dateCurrentDeductionsPay Type-Gross Pay
Employee Address293 Michael GroveBillings, MT 59102
Check Amount$1,102.98
Check #164
SSN201-92-4856
EmployeeBeakens, Joe
On-The-Go
Pay Period 6/11/2004-7/11/2004$1,502.10$250.35Totals
$503.46$117.72$636.00$244.92$0.00$0.00
$106.00$40.82$83.91$19.62$0.00$0.00
Federal WithholdingState WithholdingFed OASDI/ EE or Social SecurityFed MED/ EE or MedicareMedical401K
$1,353.33
Year-to-dateCurrentDeductionsPay Type-Gross Pay
Employee Address293 Michael GroveBillings, MT 59102
Check Amount$1,102.98
Check #164
SSN201-92-4856
EmployeeBeakens, Joe
On-The-Go
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Alisha’s gross weekly salary is $600. She is married and claims 3 allowances. Her state tax is 3.07% of her gross pay. Her local tax is 1% of her gross pay. She pays $28.40 for medical insurance and $5.00 for charity. Find the total deductions from her paycheck and her net pay.
Find each deduction, the total, the net pay, and then get teacher initials.
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• Federal: $26• Social Security: 600 x 6.2% = 37.20• Medicare: 600 x 1.45% = 8.70• State tax: 600 x 3.07% = 18.42• Local tax: 600 x 1% = 6.00• Medical insurance: 28.40• Charity: 5.00• Total deductions: $129.72• Net Pay: $600 - $129.72 = $470.28
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Application and Analysis:
In the following slides you will be given the opportunity to prove
your ability to handle this chapter’s material
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$14.00 $15.00 $19.00 $20.00
1. Tonya Westin’s gross pay for the week is $357.89. She is married and claims no allowances. Use the table on page A4 in the text. What amount will be withheld for FIT?
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5. Kyle Gruber’s gross pay this month is $5,432.50. His earnings to date for the year total $12,300.75. How much does his employer deduct from his paycheck this month for Social Security?
$336.82 $356.59 $511.85 $575.60
5432.50 x .062 = 336.815
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6. Sui Chun’s gross pay last week was $2,350. Her earnings to date for the year are $43,500. How much did her employer deduct from her paycheck last week for Medicare?
$34.08 $47.00 $58.75 $65.90
2,350 x .0145 = 34.075
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7. Tamara Matta’s annual group insurance costs $5,800, and her company pays 75% of the cost. How much does Tamara pay monthly for insurance?
$100.90 $120.83 $280.50 $362.50
5,800 x .25 / 12 = 120.8333
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9. Erika Morley’s gross weekly salary is $825.75. She is married with no dependents. The following deductions are made each week: $31.00 for federal tax; 6.2% for Social Security and 1.45% for Medicare; $42.50 for medical insurance. The state tax rate is 1.5% of gross. What is Erika’s net pay?
$543.96 $550.76 $612.09 $676.69
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Closure:
What is the difference between Net Pay and Gross pay?What is the difference between Net pay and take home pay?
Notes:Tomorrow’s objective: review for test
2Following day’s objective: evaluation
and assessment of chapter two’s material