UNDERSTANDING YOUR PAYCHECK

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Presentation transcript:

UNDERSTANDING YOUR PAYCHECK BY ELLEN JOHNSON

WHAT ARE WAGES? WAGES ARE THE AMOUNT OF MONEY YOU EARN FOR THE WORK YOU PERFORM

GROSS PAY HOURS WORKED TIMES THE AMOUNT OF MONEY YOU EARN PER HOUR

EXAMPLE YOU WORK 20 HOURS AND EARN $7.00 AN HOUR (20 X $7.00 = $140.00) YOUR GROSS PAY IS $140.00 WHAT WILL YOUR GROSS PAY BE?

NET PAY YOUR PAY AFTER DEDUCTIONS

DEDUCTIONS FEDERAL TAXES STATE TAXES FICA BENEFITS HEALTH INSURANCE RETIREMENT

FEDERAL TAXES AMOUNT WITHHELD DEPENDS ON HOW MUCH YOU EARN AND THE INFORMATION ON YOUR W4 FORM

STATE TAXES MONEY WITHHELD FOR THINGS LIKE SCHOOLS ROADS SOCIAL SERVICES

FICA FEDERAL INSURANCE CONTRIBUTION ACT – TAXES FOR RETIREMENT AND TO CARE FOR THE ELDERLY REMEMBER, SOMEDAY YOU WILL BE AN ELDERLY PERSON

MEDICAL INSURANCE MONEY DEDUCTED TO PAY FOR WHEN YOU ARE SICK

RETIREMENT MONEY WITHHELD FOR YOUR RETIREMENT (WHEN YOU NO LONGER HAVE TO WORK UNLESS YOU WANT TO)

PUTTING IT ALL TOGETHER UNDERSTAND HOW MUCH MONEY YOUR EARN AN HOUR UNDERSTAND WHAT YOUR DEDUCTIONS ARE

PUTTING IT ALL TOGETHER CONTINUED UNDERSTAND HOW TO CALCULATE YOUR DEDUCTIONS UNDERSTAND HOW TO CALCULATE YOUR GROSS PAY

REMEMBER… GROSS PAY – DEDUCTIONS = NET PAY

IS THIS IMPORTANT? YES!! YOU NEED TO REVIEW YOUR PAYCHECK TO KNOW IF YOU BEING PAID CORRECTLY AND IF THE RIGHT AMOUNT OF DEDUCTIONS ARE BEING WITHHELD

PRACTICE REVIEW THE PAY STUB WORKSHEET CALCULATE GROSS PAY CALCULATE DEDUCTIONS CALCULATE NET PAY UNDERSTAND VOCABULARY