Calculating your net pay

Terms to Know

100

What is a paycheck?

the payment that your employer will give to you for a set amount of time 

200

What is a pay period?

The set amount of time in which you are receiving compensation for

300

what is gross income? 

the amount of money you earn BEFORE anything is taken out?

400

what is income taxes? 

the amount of money that a government requires people to pay according to their income, the value of property, etc

500

What is the term for your take home pay? 

Net Income

Tax Rates

100

How much is federal income taxed? 

12%

200

What does SS stand for? 

Social Security 

300

What does GMP stand for?

Gross Monthly Pay

400

Medicare tax %??

1.40%

500

Out of all 4 we have calculated today, what taxes are the highest to pay?

Federal Income Tax

Random

100

How often are your paychecks taxed?

every paycheck 

200

What is an example of what income taxes are used for? 

• Defense and international security assistance
• Social Security
• Medicare, Medicaid, CHIP, and marketplace subsidiaries
• Economic safety net programs
• Interest on debt
• Benefits for federal retirees and veterans
• Transportation infrastructure
• Education
• Science and medical research

300

what do you divide your annual gross salary by when looking for your monthly gross salary?

12

400

Is gross or net pay higher?

gross - before taxes are taken out 

500

To calculate deduction amount you have to take your monthly gross pay * _______ 

tax amount as a decimal