I am so happy to have you all in class today Wednesday, October 4, 2017 Welcome! I am so happy to have you all in class today Do Now: Make sure your cell phones are on silent and off to the side. Please be sure to have something to write with and something to write on out and ready on your desks. Be seated before the bell rings.
Independent Living Rustemeyer Payroll Taxes
Gross Pay vs Net Pay Explain why someone earns $100 for work, but receives check for less than $100? Gross Pay: Gross pay is the amount of money you earn before taxes Net Pay: Net pay is the amount of money you are owed after taxes are withdrawn (Gross Pay - Other Withholdings) - Taxes = Net Pay ***Other Withholdings will always be deducted before taxes***
Using Payroll Taxes Social Security Tax includes: Tax Type Tax Rate Social Security (FICA) 6.20% Medicare 1.45% Total Payroll Taxes 7.65% Social Security Tax includes: Retirement benefits Benefits for dependents Benefits for disabled and parents AKA: Federal Insurance Contributions Act (FICA)
Using Payroll Taxes Medicare Taxes includes: Tax Type Tax Rate Social Security (FICA) 6.20% Medicare 1.45% Total Payroll Taxes 7.65% Medicare Taxes includes: Provides benefits for certain individuals when they reach age 65
Example: An Employee earns $1,000 in a pay period. Using the tax table, what are the payroll taxes? FICA = $62.00 Medicare = $14.50 How much is the employee’s Net Pay? 1,000 – 76.50 = $923.50 Tax Type Tax Rate Social Security (FICA) 6.20% Medicare 1.45% Total Payroll Taxes 7.65%
Income Tax Employers calculate income tax for you Use W-4 forms Income tax depends on multiple things What state you live in Income bracket you fall in
Example: A single employee earns $4,000 in a pay period. Using the tax tables, what are the taxes being paid? FICA = $248 Medicare = $58 Federal Income Tax= $400 How much is the employee’s Net Pay? $4,000-$706= $3,294 Tax Type Tax Rate Social Security (FICA) 6.20% Medicare 1.45% Total Payroll Taxes 7.65%
Income Tax Provides: Income taxes help pay for: National defense, vets, and foreign affairs Social Programs Physical, human, and community development Law enforcement Interest on national debt
Video Explanation https://www.youtube.com/watch?v=f_c_OsHlCL8
Task Complete the assignment numbers 1-10 On all math problems, YOU MUST SHOW ALL WORK Due tomorrow beginning of class!
I am so happy to have you all in class today Monday, October 9, 2017 Welcome! I am so happy to have you all in class today Do Now: Make sure your cell phones are on silent and off to the side. Please be sure to have something to write with and something to write on out and ready on your desks. Be seated before the bell rings.
Review: A Georgia woman earns $9,000 per pay period. Georgia’s state income tax is 6.6%. She also has to pay a federal income tax rate of 10%. She has asked her employer to withhold $300 from her gross pay. Using this information, and the FICA and Medicare tax percentages, calculate her amount of net pay.
Purpose of the W-4 Used by your employer to withhold the proper amount of federal income tax from your paycheck Employees fill out W-4 and the employer calculates the amount of withholdings from there.
Parts to the W-4 Personal Allowances Worksheet “Allowances” means: Employee claimed exemptions that don’t have to be subtracted from your paycheck The more allowances you claim, the less you pay in income tax
Parts to the W-4 W-4 Form itself: Information on you and your allowances will be listed here.
Scenario 1: Lance Cole is a store manager at Buckle in Bellevue Square and this is the only job Lance has at this point. Lance is single and has no children. He is a United States Citizen and is a recent college graduate. Lance’s Social Security Number is 509-72-5061 and his address is 804 NE 6th PL, Kirkland, WA 98062. He is asking his employer to withhold an extra $75 for retirement. Fill out the W-4 form with the appropriate information in regards to Lance’s situation as listed above.
I am so happy to have you all in class today Tuesday, October 10, 2017 Welcome! I am so happy to have you all in class today Do Now: Make sure your cell phones are on silent and off to the side. Please be sure to have something to write with and something to write on out and ready on your desks. Be seated before the bell rings.
Purpose of W-2 Only filled out by the employer Reports wages and salary information for employees Reports the amount of federal, state, and other taxes withheld from paycheck Only seen by the employee when preparing their tax return Serves as a summary of the payroll amount and taxes that were paid to the employee in the applicable tax year.
Involved Math: Taxable Income: Social Security & Medicare Wages: (Gross Pay – 401 (k) deductions) x number of pay periods per year = Taxable Income Social Security & Medicare Wages: Gross Pay x number of pay periods per year = TOTAL FICA TOTAL FICA x 6.2% = Social Security Taxes TOTAL FICA x 1.45% = Medicare Taxes
I am so happy to have you all in class today Wednesday, October 11, 2017 Welcome! I am so happy to have you all in class today Do Now: Make sure your cell phones are on silent and off to the side. Please be sure to have something to write with and something to write on out and ready on your desks. Be seated before the bell rings.
PSAT Day- 15 minute periods
I am so happy to have you all in class today Thursday, October 12, 2017 Welcome! I am so happy to have you all in class today Do Now: Make sure your cell phones are on silent and off to the side. Please be sure to have something to write with and something to write on out and ready on your desks. Be seated before the bell rings.
Objectives: Complete the W-2 and W-4 handouts Turn into sub Friday morning
I am so happy to have you all in class today Friday, October 13, 2017 Welcome! I am so happy to have you all in class today Do Now: Make sure your cell phones are on silent and off to the side. Please be sure to have something to write with and something to write on out and ready on your desks. Be seated before the bell rings.
Objectives: Read “Parson’s Letter to College Freshman” Summarize the article, describing if you think he is being articulate or arrogant. Use 7 quotes from the text to defend your position Due Monday!
I am so happy to have you all in class today Monday, October 16, 2017 Welcome! I am so happy to have you all in class today Do Now: Make sure your cell phones are on silent and off to the side. Please be sure to have something to write with and something to write on out and ready on your desks. Be seated before the bell rings.
Objectives: Review W-2 and W-4 handouts from Friday
I am so happy to have you all in class today Tuesday, October 17, 2017 Welcome! I am so happy to have you all in class today Do Now: Make sure your cell phones are on silent and off to the side. Please be sure to have something to write with and something to write on out and ready on your desks. Be seated before the bell rings.
Objectives: Payroll Unit Review