# Statement of Earnings by xiaopangnv

VIEWS: 2 PAGES: 13

• pg 1
```									                        Section 2-6

Statement of Earnings

Presented by M J Lund
Review of Income Tax and the
W-4 form
http://www.irs.ustreas.gov/app/unders
tandingTaxes/jsp/hows/tt/module01/t
ax_mod1_1.jsp
Net pay is the amount of money
you actually take home after
of the deductions (withholdings)
we have discussed in this unit?

Social Security and Medicare
Statement of Earnings
• Information on your pay stub.
• Shows all of your deductions.
• To find net pay. Add together all of
amount from the total pay.
Example 1
Mary North earns \$785 a week. She is
single and claims one allowance . She
pays 6.2% for Social Security and
1.45% for Medicare. The state she lives
in has a 2% state tax on gross pay. Also,
\$25 is deducted each week for health
care. Find her net pay. (Don’t forget the
Federal Tax deduction.)
Mary North earns \$785 a week. She is single and claims
one allowance. She pays 6.2% for Social Security and
1.45% for Medicare. The state she lives in has a 2% state tax
(based on gross pay). Also, \$25 is deducted each week for
health care. Find her net pay. (Don’t forget the Federal Tax
deduction.)
Earns \$785 a week - total deductions = net pay
Total deductions = Social Security 0.062 x 785 = \$48.67
+ Medicare      0.0145 x 785 = \$11.38
+ State Tax      0.02 x 785 = \$15.70
+ Federal Tax                 \$115.00
+ Health Care                   \$25.00
\$215.75
\$785.00 - \$215.75 =\$569.25
Example 2
Jim West earns \$956 a week. He is
married and claims 2 allowances. He
pays 6.2% for Social Security and
1.45% for Medicare. The state he lives
in has a 3% state tax on gross pay. Also,
\$110 is deducted each week for health
care. Find his net pay. (Don’t forget the
Federal Tax deduction.)
Jim West earns \$956 a week. He is married and claims two
allowances. He pays 6.2% for Social Security and
1.45% for Medicare. The state he lives in has a 3% state tax
(based on gross pay). Also, \$110 is deducted each week for
health care. Find his net pay. (Don’t forget the Federal Tax
deduction.)
Earns \$956 a week - total deductions = net pay
Total deductions = Social Security 0.062 x 956 = \$59.27
+ Medicare      0.0145 x 956 = \$13.86
+ State Tax        0.03 x 956 = \$28.68
+ Federal Tax                   \$96.00
+ Health Care                  \$110.00
\$307.81
\$956.00 - \$307.81 = \$648.19
Example 3
Don East earns \$750 a week. He is married, has
one child, and claims 4 allowances. He pays
6.2% for Social Security and 1.45% for Medicare.
The state he lives in has a 3% state tax on gross
pay. Also, \$150 is deducted each week for health
care. Find his net pay.
(Don’t forget the Federal Tax deduction.)
Errors Example 3
Don East earns \$750 a week. He is married, has one child
and claims 4 allowances. He pays 6.2% for Social Security
and 1.45% for Medicare. The state He lives in has a 3% state
tax on gross pay. Also, \$150 is deducted each week for
health care. Find his net pay.
(Don’t forget the Federal Tax deduction.)
Earns \$750 a week - total deductions = net pay
Total deductions = Social Security 0.062 x 750 = \$46.50
The regular office person + Medicare    0.0145 x 750 = \$10.87
who calculates the pay is + State Tax    0.3 x 750 = \$225.00
out this week. Her        + Federal Tax                \$57.00
Replacement is confused.
+ Health Care               \$150.00
\$489.37
\$750.00 - \$489.37 =\$1239.37
Errors (in white) Example 3
Don East earns \$750 a week. He is married, has one child and claims 4
allowances. He pays 6.2% for Social Security and 1.45% for Medicare.
The state He lives in has a 3% state tax on gross pay. Also, \$150 is
deducted each week for health care. Find his net pay.
(Don’t forget the Federal Tax deduction.)
Earns \$750 a week - total deductions = net pay
Total deductions = Social Security 0.062 x 750 = \$46.50
+ Medicare     0.0145 x 750 = \$10.88
3% not 30%              + State Tax      0.3 x 750 = \$22.50
4 allowances not 3     + Federal Tax                    \$48.00
+ Health Care                  \$150.00
\$277.88

\$750.00 - \$277.88 = \$472.12
Assignment

• Hmk pg 130 # 3-7

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