Social Security Tax Withholdings: Adjusted Gross Pay. x 6

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Presentation transcript:

Social Security Tax Withholdings: Adjusted Gross Pay. x 6 Medicare Tax Withholdings: Adjusted Gross Pay***x 1.45% = $___________________ State Tax Withholdings: * Adjusted Gross Pay*** x 2.5838% = $___________________ Federal Tax Withholdings: * Adjusted Gross Pay*** x 9.956% = $___________________** Health Insurance Premium: Gross Pay x 3.1119% = $___________________ 401k Employee Contribution: Gross Pay x 10% = $____________________ $1,608 - ____________________ = $ ___________________________ Gross Pay Sum of deductions Net Pay Notes: * Federal and State tax calculations are more complicated than a flat percentage. However, for simplicity of this example, we have found the percentages applicable at this income level and for a 401(k) contribution of 10%. ** Notice on the Paycheck Calculator table that Federal Taxes decrease as 401(k) contribution increases. ***Health Insurance and 401(k) contributions are pre-tax deductions. Subtract the amount of employee paid health insurance premiums and employee 401(k) contribution (up to federal limit) to arrive at adjusted gross pay (or after tax deduction amount). Total Gross Pay $1,608.00

Employment Costs Additional Employer Portion Employer Only Costs Employer Portion of Social Security Tax: Gross Pay x 6.20% = $___________________ Employer Portion of Medicare Tax: Gross Pay x 1.45% = $___________________ 401(k) Employer Match: = $___________________ (Depends on Plan selected. Plan 1 = $0, Plan 2 = $8.04, Plan 3 = $8.04) Employer Portion of Health Insurance Premium = $188.22 in this example Federal Unemployment Tax Workers Comp Insurance Life Insurance Short Term Disability Insurance Long Term Disability Insurance Employer Only Costs

Net Pay x 2 = $_______ Monthly Income Est. = Monthly Income Estimate $ Rent expense Car loan expense Gas & Electric Utilities expense Cell Phone expense Cable / Internet expense Allocation for less frequent bills like car insurance & renter’s insurance What’s left for daily expenses (on credit card in simulation) and savings for unexpected events?

Paycheck Calculator Example