1. Sales and Income Tax

2. 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 a job Income tax – A tax that is paid to the government based on a percentage of wages earned. Gross pay – Amount earned from a job Net pay – Amount paid to employee minus any taxes or deductions from income. Not in Notes Vocabulary

3. Find the total cost of a laptop that cost $659 with a sales tax of 6.25%. EX1) $659 X 6.25%. 659 X.0625 3295 13180 395400 411875. 659 + 41.19 659.00 + 41.19 700.19 sales tax $ Total cost

4. Figure the net pay for the following pay stub. Mary makes $12.00 an hour and works a 40 hour week. Use the percentage rates provided for each. EX2) Mary Ann Marshall Gross pay Medicare (1.4%) Social Security (4.2%) Federal Withholding (15%) Net Pay 40 X 12 480 X 0.014 480.00 6.72 480 X 0.04220.16 480 X 0.1572.00 480 - taxes381.12

5. Essential Question What is income tax?