1. Working and Earning: Earning Statements also called - Pay Checks or Pay Stubs
Key Ideas
Employment provides a means of creating personal income
Employee earning statements include information about……………….
gross wages, benefits, taxes and other deductions

2. Overview Information
Employees are able to monitor their salaries through the information provided on their earning statements
provided each time an employee is paid
How often do you receive earnings statements
(usually on a bi-weekly or monthly basis)
includes information about …….
hours worked, gross vs. net income, deductions, etc.

3. Gross vs. Net Income “gross” income is……..
the total amount of money an individual makes before deductions
“net” income is………
the total amount of money that an employee actually gets after deductions
Net income is also called…
“Take Home Pay”

4. Gross is usually reflected in a general salary or hourly figure
Pete earns a salary of $45,000/year
Sarah earns $13.50/hour
Neither of these employees “takes home” that full amount

5. Deductions Examples……Brainstorm……. Define….
money that is taken out of an employees gross pay for different purposes
Examples……Brainstorm…….
health insurance (medical, dental, vision)
retirement contributions
annuities/loan payments
garnishment
courts force your employer to send portions of your pay check to the person/co. you owe
(for unpaid child support, owed back taxes, etc.) –
taxes - federal, state and local
Social Security, federal income, state income, local income

6. Just Curious What do you expect to earn in your first full time job.
That is :
Your career
after completing training program or graduating college

7. Example: Pete earns a salary of $45,000/year and gets paid every 2 weeks. Then, money is deducted for
health insurance ($100/pay)
401k (10% of gross)
Social Security (7% of gross)
federal income tax (20% of gross)
state income (4% of gross)
local income taxes (2% of gross)

8. Deductions
Deduction Amount
Gross Income $45,000
Health Ins ($100 per pay)
401 k (10% of gross)
Social Securtity (7% of gross)
Fed.Income Tax (20% of gross)
State Income Tax (4% of gross)
Local Income Tax (2% of gross)
Total Deductions

9. Deductions
Deduction Amount
Gross Income $45,000
Totals for year:
Health Ins ($100 per pay)
$2,400
401 k (10% of gross)
$4,500
Social Securtity (7% of gross)
$3,150
Fed.Income Tax (20% of gross)
$9,000
State Income Tax (4% of gross)
$1,800
Local Income Tax (2% of gross)
$900
Total Deductions
$21,750
Net Income =
I HAVE NOT EATEN YET!
$23,250
= 51.6 % of Gross Income

10. ------------------------------------------------------------ $1154
Pay Check Deductions
Federal Income Tax 360
State Income Tax 110
City Income Tax 70
Medicare 25
STRS 350
Health 60
Dental 3
Vision 1
Union 15
403 B 100
Credit Union Savings 60
$1154
Not taxed on this income earned