Vocab
Gross Pay is defined as...
The amount of money you earn before your employer subtracts all withholdings and deductions.
Peter Quill's gross pay is $505.75. He is single and claims no allowances. What amount will be withheld from Peter's pay for federal income tax?
$61
Thor's gross pay is $58,000 a year. He is single with no dependents. What is the amount of his exemptions?
$2,000
What is the Social Security tax rate?
6.2%
How do I get the total amount in taxes and exemptions?
Add all of them together.
Net Pay is defined as...
The amount of money you earn after your employer subtracts all withholdings and deductions.
Bruce Banner's gross pay for this week is $547. He is single and claims 2 allowances. What amount will be withheld from Bruce's pay for federal income tax?
$47
Rocket Raccoon's gross pay is $73,500 a year. The state income tax rate is 5% of taxable wages. Rocket is married with no dependents. How much is withheld a year for state income tax?
$3,475
What is the Medicare tax rate?
1.45%
How do I find Net pay?
Gross pay - taxes/deductions
Exemptions may include...
Those in an employee's family who ARE dependents.
Tony Stark's gross pay for this week is $638.97. He is married and claims no allowances. What amount will be withheld from Tony's pay for federal income tax?
$57
Wade Wilson's gross pay is $97,300. The state income tax rate is 4.5% of taxable wages. Wade is single with 1 dependent. How much is withheld a year for state income tax?
$4,198.50
Steve Rogers's gross weekly pay is $450. What amount is deducted from her pay each week for Social Security, which is taxed at 6.2%?
$27.90
Annual Gross Pay: $86,000
Deductions: $18,000
Medical Insurance: 2,000
Net pay = ?
$66,000
The IRS provides employers with tables indicating how much money to withhold from your paycheck for...
Federal Income Tax (FIT)
Carol Denvers' gross pay for the week is $613.29. She is married and claims 3 allowances. What amount will be withheld from Carol's pay for federal income tax?
$27
Wanda Maximoff's gross pay is $62,900 a year. The state income tax rate is 4.95% of taxable wages. Wanda is married with 2 dependents. How much is withheld a year for state income tax?
$2,717.55
Thanos' annual gross pay is 56,000. What amount is deducted from his pay for Medicare if the rate is 1.45%?
$812
Gross pay: $62,300
Federal Income Tax: $13,706
Social Security: $3,862.60
Medicare: 903.35
State Tax: $3,083.85
Medical Insurance: $2,000
Net Pay = ?
$38,744.20
A graduated income tax is a system that...
Increases the tax rate at higher levels of income.
Natasha Romanoff's gross pay for this week is $640. She is married and claims 1 allowance. What amount will be withheld from Natasha's pay for federal income tax?
$49
Sam Wilson's gross pay is $96,500 a year. The state income tax rate is 5% of taxable income. Sam is married with 4 dependents. What is the amount withheld from his WEEKLY paycheck for state income tax?
$81.25
Clint Barton's weekly gross pay is $1,384. What amount is deducted from his pay for Social Security taxes if the rate is 6.2%? What amount is deducted from his pay for Medicare if the rate is 1.45%?
$85.81; $20.07
Weekly Gross Pay: $1,754
Federal Income Tax: 24%
Social Security: 6.2%
Medicare: 1.45%
State Tax: 4.95%
Medical Insurance: $90
Net Pay = ?
$996.61