UNDERSTANDING YOUR UNDERSTANDING YOUR PAYCHECKPAYCHECK

BYBY

ELLEN JOHNSONELLEN JOHNSON

WHAT ARE WAGES?WHAT ARE WAGES?

WAGES ARE THE WAGES ARE THE AMOUNT OF AMOUNT OF MONEY YOU MONEY YOU EARN FOR THE EARN FOR THE WORK YOU WORK YOU PERFORMPERFORM

GROSS PAYGROSS PAY

HOURS WORKED HOURS WORKED TIMES THE TIMES THE AMOUNT OF AMOUNT OF MONEY YOU EARN MONEY YOU EARN PER HOURPER HOUR

EXAMPLEEXAMPLE

YOU WORK 20 HOURS AND EARN YOU WORK 20 HOURS AND EARN $7.00 AN HOUR (20 X $7.00 = $140.00)$7.00 AN HOUR (20 X $7.00 = $140.00)

YOUR GROSS PAY IS $140.00YOUR GROSS PAY IS $140.00

WHAT WILL YOUR GROSS PAY BE?WHAT WILL YOUR GROSS PAY BE?

NET PAYNET PAY

YOUR PAY AFTER YOUR PAY AFTER DEDUCTIONSDEDUCTIONS

DEDUCTIONSDEDUCTIONS

FEDERAL TAXESFEDERAL TAXES

STATE TAXESSTATE TAXES

FICAFICA

BENEFITS BENEFITS

HEALTH HEALTH INSURANCEINSURANCE

RETIREMENTRETIREMENT

FEDERAL TAXESFEDERAL TAXES

AMOUNT AMOUNT WITHHELD WITHHELD DEPENDS ON HOW DEPENDS ON HOW MUCH YOU EARN MUCH YOU EARN AND THE AND THE INFORMATION ON INFORMATION ON YOUR W4 FORMYOUR W4 FORM

STATE TAXESSTATE TAXES

MONEY WITHHELD MONEY WITHHELD FOR THINGS LIKE FOR THINGS LIKE

SCHOOLSSCHOOLS

ROADSROADS

SOCIAL SERVICESSOCIAL SERVICES

FICAFICA

FEDERAL INSURANCE FEDERAL INSURANCE CONTRIBUTION ACT – TAXES FOR CONTRIBUTION ACT – TAXES FOR RETIREMENT AND TO CARE FOR THE RETIREMENT AND TO CARE FOR THE ELDERLYELDERLY

REMEMBER, SOMEDAY YOU WILL BE REMEMBER, SOMEDAY YOU WILL BE AN ELDERLY PERSON AN ELDERLY PERSON

MEDICAL INSURANCEMEDICAL INSURANCE

MONEY DEDUCTED MONEY DEDUCTED TO PAY FOR WHEN TO PAY FOR WHEN YOU ARE SICKYOU ARE SICK

RETIREMENTRETIREMENT

MONEY WITHHELD MONEY WITHHELD FOR YOUR FOR YOUR RETIREMENT RETIREMENT (WHEN YOU NO (WHEN YOU NO LONGER HAVE TO LONGER HAVE TO WORK UNLESS WORK UNLESS YOU WANT TO)YOU WANT TO)

PUTTING IT ALL PUTTING IT ALL TOGETHERTOGETHER

UNDERSTAND HOW MUCH MONEY UNDERSTAND HOW MUCH MONEY YOUR EARN AN HOURYOUR EARN AN HOUR

UNDERSTAND WHAT YOUR UNDERSTAND WHAT YOUR DEDUCTIONS AREDEDUCTIONS ARE

PUTTING IT ALL TOGETHERPUTTING IT ALL TOGETHERCONTINUEDCONTINUED

UNDERSTAND HOW TO CALCULATE UNDERSTAND HOW TO CALCULATE YOUR DEDUCTIONSYOUR DEDUCTIONS

UNDERSTAND HOW TO CALCULATE UNDERSTAND HOW TO CALCULATE YOUR GROSS PAYYOUR GROSS PAY

REMEMBER…REMEMBER…

GROSS PAY – DEDUCTIONS GROSS PAY – DEDUCTIONS

= NET PAY= NET PAY

IS THIS IMPORTANT?IS THIS IMPORTANT?

YES!! YOU NEED TO REVIEW YOUR YES!! YOU NEED TO REVIEW YOUR PAYCHECK TO KNOW IF YOU BEING PAYCHECK TO KNOW IF YOU BEING PAID CORRECTLY AND IF THE RIGHT PAID CORRECTLY AND IF THE RIGHT AMOUNT OF DEDUCTIONS ARE AMOUNT OF DEDUCTIONS ARE BEING WITHHELDBEING WITHHELD

PRACTICEPRACTICE

REVIEW THE PAY STUB WORKSHEETREVIEW THE PAY STUB WORKSHEET CALCULATE GROSS PAY CALCULATE GROSS PAY CALCULATE DEDUCTIONSCALCULATE DEDUCTIONS CALCULATE NET PAYCALCULATE NET PAY UNDERSTAND VOCABULARYUNDERSTAND VOCABULARY