Sharon F. McPherson PJHS Smart Start Financial Literacy Part of the Career Management Course for WBL...
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Financial Literacy Part of the Career Management Course for WBL Students
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Transcript of Sharon F. McPherson PJHS Smart Start Financial Literacy Part of the Career Management Course for WBL...
Financial Literacy
Part of the Career Management Course for WBL Students
Your Paycheck
Payroll and Taxes
Deductions
What do you know?
1) _______ is the total amount of person’s
or company’s income before any taxes
and deductions are taken out.
2) ______ is the sum of all financial
records of salaries, wages, bonuses,
and deductions.
3) _____ is the amount of income received
after taxes and deductions have been
taken out.
What is a Payroll?
A payroll is the sum of all
financial records of salaries,
wages, bonuses, and deductions
The information from your employer’s payroll is used to generate your paycheck.
Paychecks
• Your paycheck may be a paper document or an electronic transfer known as a direct deposit.
• It is calculated on a document known as a play slip.
How is my paycheck calculated?
Gross Income
Less: Deductions
Net Income
Your pay slip sets forth a
statement of your earnings:
What is Gross Income?
The total amount of person’s or
company’s income before any
taxes and deductions are taken
out.
What Taxes?
• Federal and State Incomes Taxes
• City/Local Income Taxes
• FICA:– Social Security– Medicare
What Deductions?
Deductions include:
• Group Health Insurance
• Retirement/Pension contributions
• Charitable contributions
• Miscellaneous such as union dues
What is Net Income?
The amount of income
received after taxes and
deductions have been
taken out.
Equation
Gross Income
Less Taxes
Less Deductions
Equals Net Income
Understanding Check
Lonnie Flanagan's weekly gross income
is $1,250. Each week she has $64.37 in
deductions, plus state tax of two percent
of her gross pay, and Social Security and
Medicare taxes of 7.65 percent of her
income. What is her net income?
A) $185.00 B) $1,058.79 C) $1,065.00 D)
$1,435.00
The Answer
A) $185.00
B) $1,058.79
C) $1,065.00
D) $1,435.00
What did you know?
1) Gross Income is the total amount of
person’s or company’s income before any
taxes and deductions are taken out.
2) Payroll is the sum of all financial records
of salaries, wages, bonuses, and
deductions.
3) Net Income is the amount of income
received after taxes and deductions have
been taken out.
Assignment
Go to the following website and click on Lessons-Exam 2 for more information on taxes and deductions:
http://ww2.nscc.edu/Math1075-100/lessons.htm
