September 7, 2011 Objective: Students will identify how to calculate gross pay and net pay.

Slides:

Advertisements

Similar presentations

Payroll Accounting Chapter 12.

Advertisements

Copyright 2007 Thomson South-Western Unit 5 Taxes Building Your Future.

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

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

Lawns R Oklahoma State Department of Education.

2.3.9.G1 February 12, 2014 Getting Paid State Comparison Project TodayLast Class The Places You will Go! Notes Worksheet.

Chapter #1. Section #1.1 Compute payroll deductions and net pay. Identify optional and required employee benefits and recognize their value.

Frank Wood and Alan Sangster, Frank Wood’s Business Accounting 1, 12 th Edition, © Pearson Education Limited 2012 Slide 21.1 Chapter 21 Employees’ pay.

Pay and Taxes INVESTIGATE WHAT IMPACTS YOUR PAYCHECK AND PERSONAL TAXES ©2014 National Endowment for Financial Education | Lesson 3-3: Pay and Taxes.

PAYCHECKS, PAY PERIODS, TYPES OF PAY. Pay Periods In order to understand your paycheck, you need to understand pay periods. How often you get paid.

Business Accounting Chapter 12. Importance of Payroll Records Required by law – keep accurate payroll records – report employee earnings – pay payroll.

NOTE: To change the image on this slide, select the picture and delete it. Then click the Pictures icon in the placeholder to insert your own image. Getting.

Working and Earning Earning Statements Key Ideas Employment provides a means of creating personal income Employee earning statements include information.

Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.Glencoe Accounting Computing Gross Pay Calculating Gross Earnings Section 12.1 gross.

Payroll Accounting Making Accounting Relevant Businesses issue payroll checks to their employees to compensate them for work performed. Making Accounting.

Pay and Taxes INVESTIGATE WHAT IMPACTS YOUR PAYCHECK AND PERSONAL TAXES ©2012 National Endowment for Financial Education | Lesson 3-3: Pay and Taxes 1.

NOTE: To change the image on this slide, select the picture and delete it. Then click the Pictures icon in the placeholder to insert your own image. Getting.

Salary vs. Hourly Wage What is a Salary? What is an Hourly Wage? Is it the same in all states?

Consumer Decisions Earning Money.

REQUIRED DEDUCTIONS Money subtracted from your gross pay for taxes by the government, also called payroll taxes: Federal Taxes State Taxes FICA (Social.

Part 1: Earning Statements. Working and Earning Earning Statements Key Ideas Employee earning statements include information about………………. gross wages,

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.

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.

Do Now… Computer Whiz Carl works at Circuit City. I think I know, check my answer Carl worked 12 hours for an hourly rate of $7.50 The Federal Tax Rate.

2.3.9.G1 © Take Charge Today –August2013 – Getting Paid– Slide 1 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer.

Understanding Paychecks Where Does Your Money Go?.

Part 1 Intro: Working and Earning Goal: Describe the factors that influence an individual’s income. Brainstorm…… individual skills and abilities, work.

Payroll Accounting Making Accounting Relevant Businesses issue payroll checks to their employees to compensate them for work performed. Making Accounting.

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

The truth about your paycheck Gross vs Net Pay. Taxes Federal 10 or 15% (details) Federal 10 or 15% (details)details Social Security 6.2% (up to $6,622)

September 12, 2011 Objective: Students will examine optional payroll deductions.

NOTE: To change the image on this slide, select the picture and delete it. Then click the Pictures icon in the placeholder to insert your own image. Getting.

 Gross Pay - income earned before any deductions  Salary - monthly or annual  Hourly - regular and overtime  Piecework - earn a set amount per item.

Paychecks: Using Your Money Wisely Chapter 2. Calculating Earnings  Wage- is a dollar amount per hour that you get paid for doing work  Gross Pay- total.

Financial Literacy Career Management. Your Paycheck Payroll and Taxes Deductions.

Basic Goals of Payroll System  Prepare and issue payroll checks  Produce records for accounting purposes and reporting to government and management.

In your notebook…  Imagine you have taken a job at the mall earning $9.00 per hour. Over the course of two weeks you work a total of 20 hours. Estimate.

Tax Unit Study Guide for YTP 12 Semester 2 Final Exam.

PAYROLL ACCOUNTING Chapter 12. Using a Payroll System  Payroll – list of the employees and the payments due to each for a pay period  Pay Period – the.

 The amount of a person’s income before all deductions.

© 2014 Cengage Learning. All Rights Reserved. Learning Objectives © 2014 Cengage Learning. All Rights Reserved. LO1 Analyze a payroll transaction. LO2.

NOTE: To change the image on this slide, select the picture and delete it. Then click the Pictures icon in the placeholder to insert your own image. Getting.

FORMS OF INCOME Wage Minimum Wage Piecework Income Salary Commission Tips Bonus.

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.

Standard 1 VOCABULARY.  Career – a purposeful course of action or purpose in life that generally provides income  Earned Income –money received for.

The truth about your paycheck Gross vs Net Pay. Taxes Withheld Federal Federal – Income tax 10 or 15% (details) details – Social Security 6.2% (up to.

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

 What is a pay cheque?  One of the most important documents you encounter regularly when living independently is your pay cheque. To be sure that mistakes.

Lesson 1: Reading a Pay Stub. Objectives: Identify sections of a pay stub Determine how to calculate net pay Recognize various paycheck deductions.

My Paycheck Chapter 3. Types of Income Earned Income – Money received from working. Six types: wages, tips, salaries, bonuses, commissions, royalties,

Who is FICA?? The tax man cometh!!

Key Ideas Employment provides a means of creating personal income

Getting Paid Advanced Level.

Pay, Benefits, and Incentives

JOE WORKED 40 HOURS THIS WEEK. HE EARNS $15.75 PER HOUR

Journal You can choose whether you want to be paid $50,000 salary for the whole year of $20 an hour for however long you work. You will get time and a.

Getting Paid Advanced Level.

Getting Paid Advanced Level.

Getting Paid Advanced Level.

© 2014 Cengage Learning. All Rights Reserved.

© 2014 Cengage Learning. All Rights Reserved.

The truth about your paycheck Gross vs Net Pay

Earning & Spending Money

Payroll Accounting $ $ $ $ Making Accounting Relevant Chapter 12

Who is FICA?? The tax man cometh!!

Getting Paid Advanced Level.

Getting Paid Advanced Level.

Presented By: Insert Name(s)

Presentation transcript:

September 7, 2011 Objective: Students will identify how to calculate gross pay and net pay.

Discussion What’s the most important part of working? Does anyone know the term Gross Pay? What about Net Pay?

Terms Gross Pay: The total of an employee’s regular pay including allowances, overtime pay, commissions, and bonuses, and any other amounts, before deductions are made. Net Pay: The portion of a salary or wages that an employee actually gets (take home) after paying all deductions and taxes. Tax: Compulsory monetary contribution imposed by the government on activities of enjoyment, expenditure, income, occupation, privilege, property, etc. on individuals and organizations.

Gross vs. Net Pay Many businesses, forms, applications will want to know you GROSS PAY. In addition, your employer will tell you how much you will be paid as a GROSS salary figure but most people are more concerned with their NET salary… so how can you calculate your NET salary???

Gross Pay Gross Pay: $31,200 a year = $600 a week = $15 an hour… how to calculate? Other known numbers are: generally 40 hours per week 52 weeks per year 2080 (40 x 52) (if the 40 hours per week varies then the rest of the calculations must also vary)

Try these calculations in your notebook So try to calculate… $16 an hour… how much per year? $60,000 a year… how much per hour? $500 a week… how much per hour? $100,000 a year… how much per week? $20 an hour… how much per week? $300 a week… how much per year? $16 an hour, working 50 hours a week… how much per year?

Answers $16 an hour x 2080 = $33,280 per year $60,000 a year / 2080 = $28.84 per hour $500 a week / 40 = $12.50 per hour $100,000 a year / 52= $1,923 per week $20 an hour x 40 = $800 per week $300 a week x 52 = $15,600 per year $16 an hour, working 50 hours a week = 16 x 40 = 640 (16 x 1.5) x 10 = 240 why? ( ) x 52 = $45,760 per year

Calculating Net Pay… not so easy What’s removed from your Gross Pay before you get Net Pay, we’ll discuss more tomorrow! Income Tax: based on a government schedule based on Gross Pay and the number of family members claimed. Social Security Tax: 6.2% of Gross Pay Medicare Tax: 1.45% of Gross Pay Other Optional Deductions can include… Health Insurance, Retirement, Charitable Donations, Pre-tax spending accounts, etc. Online calculator: asp

Conclusion What was our objective for today? Homework… for tomorrow complete the worksheet on calculating Gross Pay.