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.

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Presentation transcript:

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 = $ / 26 = $76.92

net pay The 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

Net Pay

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.

Federal: $26 Social Security: 600 x 6.2% = Medicare: 600 x 1.45% = 8.70 State tax: 600 x 3.07% = Local tax: 600 x 1% = 6.00 Medical insurance: Charity: 5.00 Total deductions: $ Net Pay: $600 - $ = $470.28

Application and Analysis: In the following slides you will be given the opportunity to prove your ability to handle this chapter’s material

$14.00 $15.00 $19.00 $ Tonya Westin’s gross pay for the week is $ She is married and claims no allowances. Use the table on page A4 in the text. What amount will be withheld for FIT?

5.Kyle Gruber’s gross pay this month is $5, His earnings to date for the year total $12, How much does his employer deduct from his paycheck this month for Social Security? $ $ $ $ x.062 =

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 $ ,350 x.0145 =

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? $ $ $ $ ,800 x.25 / 12 =

9.Erika Morley’s gross weekly salary is $ 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? $ $ $ $676.69

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 2 Following day’s objective: evaluation and assessment of chapter two’s material