Gross Pay
TRUE or False
Gross pay is calculated by multiplying the number of hours worked by the hourly rate.
TRUE
TRUE or FALSE
The total amount of money you have earned during a pay period, before any payroll deductions are taken out is called Net Pay.
FALSE
The total amount of money you have earned during a pay period, before any payroll deductions are taken out is called GROSS Pay
What are the four (4) most common payroll deductions?
Taxes
Medical
Dental
Retirement
What does FICA stand for?
Federal Insurance Contribution Act
To earn overtime, an hourly employee must work more than _____hours a week.
40
Anything over 40 hours per week is overtime.
Gross pay - _______ = Net pay
Payroll deductions
TRUE or FALSE
State taxes will be deducted from you paycheck no matter what State you live in.
FALSE
Medicare is ___ % gross pay.
1.45%
James worked 37 hours last week and earns $22.75 per hour.
What is James' Gross pay?
37 x 22.75 = $841.75
An intern has gross income of $703 and payroll deductions of $251.18. What is the intern's net pay?
$451.82
703 - 251.18 = $451.82
What are the 4 types of tax payroll deductions?
Federal taxes
State taxes
Local taxes
FICA
With a gross pay of $570, calculate the FICA tax payroll deduction.
$43.605
SS = 570 * 6.2% = $35.34
Med = 570 * 1.45% = $8.265
FICA = 35.34+8.265 = $43.605
Ashley worked 43 hours last week at $9.50 per hour. What was her gross pay?
$422.75
REGULAR: 40 x 9.50 = $380
OVERTIME: 3 x 14.25 = 42.75
Gross pay = 380 + 42.75 = $422.75
David's gross pay was $550. What was his net pay if his deductions were $110 for payroll taxes and $22.50 for health insurance?
$417.50
550 –110-22.50 = $417.50
______ and ______ make up FICA.
SOCIAL SECURITY and MEDICARE make up FICA
Jerry is a chef and works 35 hours a week at $12. What would be his gross pay after working 4 weeks?
$1,680
35 x 12 = $420
$420 x 4 = $1,680
Caleb makes $25.00 an hour mowing lawns during the summer. He gets paid every 2 weeks. If he works 41 hours in a week 1, and 49 hours in week 2, what is his gross pay?
$2,375
REGULAR: 80 x 25= $2000
OVERTIME: 10x37.50 = $375
GROSS PAY = 2000 + 375 = $2,375
A gardner earns $17.95 per hour and works 40 hours. His payroll deductions are $215. What is his net pay?
$503
Gross pay = 17.95 x 40 = $718
Net pay = 718 - 215 = $503
How is your federal tax deduction determine?
The Federal tax deduction is based on how much money you make and form W4.
What is the Net pay?
Gross pay: $670
Federal tax: $40
State tax:$20.57
Social Security tax: ?
Medicare tax:?
Medical: $50
Retirement: $25
$483.17
670- 40 – 20.57-41.54-9.72-50-25 = $483.17