1. Statement of Earnings pp. 128-132 2-6 SECTION

2. Click to edit Master text styles Second level Third level Fourth level Fifth level 2 SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 2-6, Slide 2 of 17 2-6 Section Objective Figure out: net pay per pay period

3. Click to edit Master text styles Second level Third level Fourth level Fifth level 3 SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 2-6, Slide 3 of 17 2-6 net pay (p. 128) The amount you have left over after all tax withholdings and personal deductions have been subtracted from your paycheck. Key Words to Know

4. Click to edit Master text styles Second level Third level Fourth level Fifth level 4 SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 2-6, Slide 4 of 17 2-6 Net Pay = Gross Pay – Total Deductions Formula

5. Click to edit Master text styles Second level Third level Fourth level Fifth level 5 SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 2-6, Slide 5 of 17 2-6 Alysha Moore’s gross weekly salary is $600. She is married and claims 3 allowances. The Social Security tax is 6.2 percent. The Medicare tax is 1.45 percent. The state tax is 1.5 percent. Each week she pays $12.40 for medical insurance and $2.50 for charity. Is Moore’s earnings statement correct? Example 1

6. Click to edit Master text styles Second level Third level Fourth level Fifth level 6 SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 2-6, Slide 6 of 17 2-6 Figure 2.4

7. Click to edit Master text styles Second level Third level Fourth level Fifth level 7 SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 2-6, Slide 7 of 17 2-6 Find the total deductions. a. Federal withholding $35.00 b. Social Security: 6.2% of $600.00 37.20 c. Medicare: 1.45% of $600.00 8.70 d. State tax: 1.5% of $600.00 9.00 e. Medical insurance 12.40 f. Charity 2.50 Total $104.80 Example 1 Answer: Step 1

8. Click to edit Master text styles Second level Third level Fourth level Fifth level 8 SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 2-6, Slide 8 of 17 2-6 Find the net pay. Gross Pay – Total Deductions $600.00 – $104.80 = $495.20 Her statement is correct. Example 1 Answer: Step 2

9. Click to edit Master text styles Second level Third level Fourth level Fifth level 9 SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 2-6, Slide 9 of 17 2-6 Statement of Earnings 2-6 END OF SECTION Homework Pg. 129: 1-7, 8-21 odd