Calculating Sales and Income Tax

Slides:

Advertisements

Similar presentations

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 3-1 Completing Payroll Records for Employee Earnings and Deductions.

Advertisements

Income Tax Withholding Section 6.4. Employee’s Withholding Allowance Certificate (IRS W-4 form) Form on which employee states marital status and number.

Chapter Seven PAYROLL AND INCOME TAX Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin.

Federal Income Tax CONT 110. Terms Adjusted Gross Income Adjustments to Income Earned Income Tax Credit Estimated Tax Payments Exemptions Health Savings.

Tax Vocabulary. Gross Pay The amount of money you earn each pay period.

8-6 Applications of Percents Course 3 Warm Up Warm Up Problem of the Day Problem of the Day Lesson Presentation Lesson Presentation.

Deductions. Gross Income Amount of money you earn before any deductions.

Calculating Payroll Taxes By Adote Akue. Payroll Taxes Consist of: Social Security Tax (6.2%) Medicare Tax (1.45%) State Income Tax (1.4%) Federal Income.

NEXT Death and Taxes NET PAY NOTES What things are certain in life?

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.

Business Math Assignment Press F5 to begin to playing this slide show.

McGraw-Hill/Irwin ©2008 The McGraw-Hill Companies, All Rights Reserved Chapter 9 Payroll.

Chapter Nine PAYROLL Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin.

Lesson 1-1 Example Example 1 Karen bought a dress that cost $32. She paid 7% in sales tax. How much did she pay in tax? 1.Write the percent proportion.

Commission, Sales Tax, and Profit

LESSON 12-2 Determining Payroll Tax Withholding

JEOPARDY TermsSalary, Overtime & Commission Take-Home Pay Benefits & Expenses RandomsDeductions $100 $200 $300 $400 $500 Let’s play! ***

What different types of taxes are deducted from employee’s paychecks? LESSON DO NOW.

2.1 Deductions from the Gross Pay

Applications of Percents

Lesson 2-3 Taxes and Other Deductions - List the required and optional deductions from gross pay. - Explain the contents of commonly used federal tax forms.

#1. Calculating Gross Income Dan works part time at Shopko Dan worked 32 hours this week Dan makes $9.75/hour How much was Dan’s Gross Income?

Sales and Income Tax. Sales tax – a tax that is added to the cost of goods or services based on the percentage of the cost. Income tax – A tax that is.

Pre-Algebra 8.6 and 8.7 Applications of Percents.

Pre-Algebra HOMEWORK Page 423 #31-38 & Spiral Review (#39-45) Answers.

Learn to find commission, sales tax, and percent of earnings.

Applications of Percents 6-6 Warm Up Warm Up Lesson Presentation Lesson Presentation Problem of the Day Problem of the Day Lesson Quizzes Lesson Quizzes.

Applications of Percents 6-5 Warm Up Warm Up Lesson Presentation Lesson Presentation Problem of the Day Problem of the Day Lesson Quizzes Lesson Quizzes.

Course Applications of Percents Warm Up Estimate % of out of % of out of % % Possible answers:

GOALS BUSINESS MATH© Thomson/South-WesternLesson 2.1Slide 1 2.1Deductions from Gross Pay Find federal withholding tax deductions Calculate social security.

SECTION 2-6 Statement of Earnings pp

The Taxes You Pay. 1. Payroll Taxes -taxes based on the payroll of a business upon employee total earnings Paid to the govt. by you and your employer.

$$$.  How much a person earns is usually expressed as an annual amount. For example, $ annually  Annual = 1 year = 12 months = 52 weeks  However,

CALCULATING NET MONTHLY INCOME. STEPS TO CALCULATING NET MONTHLY INCOME Step 1: Pay Rate X Hours Worked = Gross Weekly Income Step 2: Gross Weekly Income.

1 Taxation Press Ctrl-A ©2009 – Not to be sold/Free to use Stage 5 Year 9.

© 2014 Cengage Learning. All Rights Reserved. Learning Objectives © 2014 Cengage Learning. All Rights Reserved. LO6 Prepare a payroll register. LO7 Prepare.

Homework 1.Every month, Gillian makes $1600 plus an 8.9% commission on sales. If her sales last month totaled $18,400, what was her total pay? 2. The.

Applications of Percents

Pre-Algebra 8-6 Applications of Percents 1. The lunch bill was $8, and you want to leave a 15% tip. How much should you tip? 2. The sales tax is 5.75%,

NS1.7 Solve problems that involve discounts, markups, commissions, and profit and compute simple and compound interest. Also covered: NS1.3 California.

Understanding Paychecks Where Does Your Money Go?.

Applications of Percents

Understanding Your Paystub. Deductions Anything subtracted from the pay you earned Types – Federal taxes – State taxes – Local taxes (county) – Social.

Unit 43 Paycheck Calculation. Basic Principles of Paycheck Calculation Two main terms are used regarding payroll: gross pay and net pay. –Gross pay is.

Take-Home Pay The deductions taken out of your paycheck help support schools, roads, national parks, and more. Why do you think you have to pay taxes?

What items must be included in your notebook ? What items must be included in your notebook ? When is the notebook due? When is the notebook due? When.

Lesson 13: Net Pay Consumer Math: p When employees receive their paychecks, they should know that the check does not include their full earnings,

Gross Income the total amount of money one earns Ex. $6.15 an hour Multiplied by 40 hrs. per week_______________ Multiplied by 52 weeks per year________________.

© 2014 Cengage Learning. All Rights Reserved. Learning Objectives © 2014 Cengage Learning. All Rights Reserved. LO3 Demonstrate the process for determining.

Budget Notes Gross Income: the total amount of money one earns Ex. $7.25 an hour Multiplied by 40 hrs. per week______________ Multiplied by 52 weeks per.

Taxes and Your Paycheck Career and Financial Management 2.

Taxes Gov’tForms Deductions.

Paycheck Tax Deductions Lesson 3-1. What is the Definition of Tax? Compulsory charges imposed on citizens by local, state, and federal government.

Payroll Computations, Records, and Payment Section 2: Calculating Earnings and Taxes Chapter 10 Section Objectives 2.Compute gross earnings of.

2.1 F EDERAL I NCOME T AX FIT: (Federal Income Tax) is money withheld by employers. Required by law Amount is dependent on how much is made Taxes are used.

Sales and Income Tax. Sales tax – a tax that is added to the cost of goods or services based on the percentage of the cost. Income – wages earned from.

Figuring Your Paycheck Life Choices _____. Introduction Main reason most of us work is to _____ Paychecks are used to pay for _____ Important to know.

Income Taxes for Individuals Calculated as a percent of your taxable income Taxable Income = Gross Pay - Pre-Tax Deductions (examples: retirement plan.

Practical Math Applications © Cengage Learning/South-Western Practical Math Applications © 2011 Cengage Learning. All rights reserved. May not be scanned,

SECTION 2-6 pp Statement of Earnings.

Applications of Percents

How tax is calculated on your Taxable income Example Your gross income = $126,000 Your deduction = $ 6,000 Taxable income = $120,000.

Employer-Paid Taxes Gross Up Calculations.

Personal Financial Literacy

INCOME STATEMENT 1. Net Sales 2. Net Purchases

Employer-Paid Taxes Gross Up Calculations.

How much do you actually make?

Business Math Assignment

Presentation transcript:

Calculating Sales and Income Tax 13.1 Calculating Sales and Income Tax How do you calculate sales tax and income tax?

ADDITIONAL EXAMPLE 1 The sales tax rate is 6.25%. Complete the table to find the total cost of the purchase, including tax.

ADDITIONAL EXAMPLE 2 Novak’s monthly gross pay is $9,075. Federal withholding is 17.95%. His deductions for Social Security and for Medicare are $381.15 and $131.59. What is Novak’s net pay? $6,933.30

ADDITIONAL EXAMPLE 3 After deductions, Thea has a taxable income of $31,286. She paid a total of $4,185 in federal withholding. Find the tax due on Thea’s income. Will she have to pay an additional amount or will she get a refund? $4,266; she has to pay an additional $81.

13.1 LESSON QUIZ 7.13.A The table shows items a soccer coach bought. The sales tax rate is 7%. 1. Find the total cost for each item. Soccer balls: $192.54; Portable nets: $331.25; Speed rings: $37.97

The table shows items a soccer coach bought. The sales tax rate is 7%. 2. Find the total amount the coach spent on all the items. $561.76

Allie’s monthly gross pay is $8,100. Federal withholding is 16 Allie’s monthly gross pay is $8,100. Federal withholding is 16.74% of her gross pay. The Social Security deduction is 4.2% and the Medicare deduction is 1.45% of her gross pay. 3. Find each of the deductions. Federal withholding: $1,355.94; Social Security: $340.20; Medicare: $117.45 4. Find Allie’s net pay. $6,286.41

5. After deductions, Ray has a taxable income of $32,747. He paid a total of $4,595 in federal withholding. Find the tax due on Ray’s income. Will he have to pay an additional amount, or will he get a refund? $4,484; he will get a refund of $111.

How do you calculate sales tax and income tax? Sample answer: Multiply the amount to be taxed by the tax rate.