1. CALCULATING NET MONTHLY INCOME

2. STEPS TO CALCULATING NET MONTHLY INCOME Step 1: Pay Rate X Hours Worked = Gross Weekly Income Step 2: Gross Weekly Income X Number of Weeks Paid = Gross Yearly Income Step 3: Gross Yearly Income / 12 (Months in a Year) = Gross Monthly Income Step 4: Sum up all Percentage of Deductions = Total Percentage of Deductions Step 5: Gross Monthly Income X Total Percentage of Deductions = Monetary Deductions Step 6: Gross Monthly Income --- Monetary Deductions = Net Monthly Income

3. BILLY BOB EARNS $9.00 PER HOUR. BILLY BOB WORKS 40 HOURS PER WEEK BILLY BOB IS PAID FOR 50 WEEKS PER YEAR (2 WEEKS OFF) Step 1: Pay Rate X Hours Worked = Gross Weekly Income

4. BILLY BOB EARNS $9.00 PER HOUR. BILLY BOB WORKS 40 HOURS PER WEEK BILLY IS PAID FOR 50 WEEKS PER YEAR Step 2: Step 2: Gross Weekly Income X Number of Weeks Paid = Gross Yearly Income Gross Weekly Income X Number of Weeks Paid = Gross Yearly Income

5. BILLY EARNS $9.00 PER HOUR. BILLY WORKS 40 HOURS PER WEEK BILLY IS PAID FOR 50 WEEKS PER YEAR Step 3: Gross Yearly Income / 12 (Months in a Year) = Gross Monthly Income

6. BILLY’S DEDUCTIONS ARE: FEDERAL TAX– 7% STATE TAX– 3% LOCAL TAX– 1% SOCIAL SECURITY– 7% Step 4 Fed Tax + State Tax + Local Tax + Soc Sec = Total Percentage of Deductions

7. Step 5: Gross Monthly Income X Total Percentage of Deductions = Monetary Deduction

8. Step 6: Gross Monthly Income – Monetary Deductions = Net Monthly Income

9. STEPS TO CALCULATING NET INCOME Step 1: $9.00 X 40 = $360 is Net Weekly Income Step 2: $360 X 50 = $1800 is Net Yearly Income Step 3: $18,000 / 12 = $1,500 is Net Monthly Income Step 4: 7% + 3% + 1% + 7% = 18% is Total Percentage of Deductions Step 5: $1,500 X.18 = $270 is the Monetary Deductions Step 6: $1,500 – 270 = $1,230 is Net Monthly Income