1. Computing Deductions on Your Paycheck

2. Joe Beakens
Joe works at a small office and makes $15 dollars an hour. He is paid monthly. Let’s figure out Joe’s deductions.
If Joe works 160 hours per month, what should his GROSS income on his paycheck be?
If he is getting paid for the month of May, what should his Year to Date gross income be?

3. Joe’s Gross Income
15*160=$2400
$2400*5=$12,000

4. Joe’s Deductions
If 6.5% of his paycheck goes to Social Security, how much is that deduction?
$2400*6.2% OR (2400*.062)
1.45% of Joe’s paycheck should be kept for medicare. How much is that deduction?
2400*.0145
Sometimes these deductions may be listed together on the paystub. What is the total of these deductions?

5. Social Security=$148.80
Medicare = $34.80
TOTAL DEDUCTIONS= $183.60

6. Employee Deductions
Joe chooses to utilize the benefits of health insurance and retirement savings from his employer. His insurance deducts 6% of his check and his retirement plan deducts 5% every paycheck. How much are these deductions?
2400*.06
2400*.05
2400*.06=$144
2400*.05=$120
Total Deductions are $264

7. 2400*.06=$144
2400*.05=$120
Total Deductions are $264

8. Federal & State
If Joe has $ for federal tax taken out and $ for state income taken out, combined with all other deductions; what is Joe’s net pay?
=$796.60 =$