Type of Taxes/Deductions
What three brackets are taxes mostly divided into?
Taxes on what you earn, taxes on what you buy, and taxes on what you own."
Which way of pay gives you money at an hourly rate
Hourly Pay
What is the amount of money called BEFORE any taxes or deductions are taken out of an employee's paycheck?
Gross Pay
If an employee worked 18 hours in a given period and earned $12 per hour, what is their gross pay?
$216
June's total gross pay is $596.00 and calculated a total of $102 in deductions. What is her net pay?
$494
What is included in FICA tax?
Social Security and Medicare
Which way of pay gives a consistent paycheck?
Salary
What is the amount of money called AFTER taxes or deductions are taken out of an employee's paycheck?
Net Pay
What is the formula for hourly gross pay?
Hours worked x amount earned = gross pay
What is the formula for net pay?
Gross pay - deductions = net pay
Who pays more taxes in a progressive taxation system?
Those with a higher wealth have pay more in taxes than those with lower wealth.
Which worker (salaried or hourly) uses a semi-monthly payroll the most?
Salaried Workers
What are mandatory deductions?
Mandatory payroll deductions are the required wages that are withheld from your paycheck to meet income tax and other required obligations.
What is the formula for salaried gross pay?
Annual salary / pay structure = gross pay
Federal Withholding Tax: $124.00
SS Tax: $65.00
Medicare Tax: $59.00
State Income Tax: $62.00
What is the total deduction?
$310
List at least 3 common deductions.
Federal Taxes
State Taxes
Social Security
Medicare
Health Insurance
Dental Insurance
Retirement
Which type of employee (salaried/hourly) are more alible to getting overtime pay?
Hourly employees
What are commissions?
Compensation paid to an employee after completing a certain task, like selling a certain amount of goods and/or products.
An employee has a weekly payroll and an annual salary of 28,000. What is their gross income?
$538.461 OR $538.5
Find the Net Pay:
Gross Pay: $800
Federal Tax: $96.80
State Tax: $42.97
Soc. Sec. Tax: $47.20
Medicare: $9.70
Health Ins.:$41.63
$561.7
What are payroll taxes?
Taxes imposed on employers or employees
What is the main difference between salaried and hourly employees?
Salaried employees are paid the same amount each pay period, based on their total salary. An hourly worker earns a set payment for each hour they work.
What are voluntary deductions?
Optional choices an employee makes with their employer's agreement.
Clara earns $10.42 per hour. She worked 49 hours this week total. What is her gross pay?
$551.8
An employee finds out that their total amount of deductions adds up to $120.92, if their gross pay is $550, what is their net pay?
$429.08