Payroll Josh Scott, Cara Bardon, Kay Licari, Briana Barber, and Rebekah Schalk.

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Presentation transcript:

Payroll Josh Scott, Cara Bardon, Kay Licari, Briana Barber, and Rebekah Schalk

Gross Pay Vs. Net Pay Gross Pay is the total amount of money earned on a paycheck. Net Pay is the amount of money that is actually paid to the employee after any deductions.

Wisconsin Income Tax Rate Wisconsin’s individual income tax rates vary from 4.40% to 7.65% depending on the marital status and income. Compared to other states, Wisconsin gets a larger share of its revenue from the property tax and income taxes, and a smaller share from sales. But Wisconsin gets the same share of its revenue from state and local sources from the corporate income tax.

Income taxes Federal income tax: 10%- 39.6%, depending on how much income and if your single, married, or the head of a house, goes to federal government State income tax: 4.60%- 7.75%, depending on how much income in coming in and if your single or married, goes to state government Medicare tax: 1.45%, Pays for Government medical care (NOT HEALTH INSURANCE) Social security tax: 6.2% pays for social securty

Income Taxes - Example For someone who makes an annual income of $50,000, for every pay period their gross pay would be around $1, After deductions are taken out, their net pay would be around $1,423 (Deductions being around $500 depending on the person--it may vary) Out of the paycheck… for $50,000/$100,000 $27.88/$62.96 is deducted for Medicare Tax $119.23/$ is deducted for Social Security Tax $105.77/$ is deducted for the State Income Tax $247.12/$ is deducted for the Federal Income Tax

Tax Withholding How to fill out a W-4 Tax withholdings are taxes that are taken out of one's paycheck throughout the year. But that money is partially given back to you at the end of the year when you fill out your Tax form It all depends on what your income is

Deductions Tax deductions decrease taxable income-- how much money you owe the government. The percentage taken out of every paycheck depends on the amount of the check, the number of dependents claimed, and the state that the person works in. A rough estimate is 20% Some examples of deductions are: taxes, health insurance, and retirement plans, charity funds

Direct Deposit An Electronic deposit of your check directly into your account. This means that you don’t have to bring the check to the bank. The amount made on your check will be present in your account on payday.

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