2 AssignmentWork on a5q1Answer the questions on a piece of paper as we go along.Fill out the chart with your math answers
3 Question 1You are looking at three different jobs in the educational sector of publishing.One is a full time position as an editor that pays a salary of $37,000 per yearOne is a full time position as an online designer that pays an hourly wage of $26.50 an hour – you work five days a week, eight hours a dayOne is a sales representative job that pays 5% commission. Reps usually sell $100,000 a month in textbook sales.
4 Questions 1a-1c Record the income information Calculate the annual gross income for each jobCalculate the monthly gross income for each job1d – on a piece of paper answer the following question – based on the current information, which job would you currently take and why?Be prepared to justify to the class
5 Taxes 2a-2eYou live in a state that does not require state income tax (Texas and Nevada are two such states)You have to pay Social Security tax on your income (6.2%), Medicare tax (1.45%), and Federal tax (15%).Calculate the taxes for each and recordFind the after tax income
6 2f - Question to answerYou know that you need to have a net income (after taxes) of at least $3,000 to cover all expenses for the monthBased on this information, can you still accept all three jobs? Why or why not?Which job will you take now based on this new information?
7 BenefitsVacation and sick leave are add ins to jobs – some have them and some do not – if you do not have either, then time off will cost you moneyEditor has 2 weeks of paid vacation and 5 days of paid sick leave a yearDesigner has five paid vacation days and 3 days paid sick leave a yearThe sales rep has no paid vacation and no paid sick days
8 3c - Question to answerKnowing this information, which job would you take and why?
9 Costs to you for vacation and sick leave You plan on taking 2 weeks of vacation a year regardless of the job –You usually take an average of 4 sick days a yearQuestion – 3d – knowing this information, and ignoring the $3,000 rule, which job would you take and why?Is there an added cost to any of the jobs based on this information? What is the cost for each job?
10 Insurance costsYou live in a state where insurance costs come out after taxes –The editor has health insurance paid by the company, life insurance at $35.00 a month, and a retirement plan paid in full by the companyThe designer has health insurance paid by the company, life insurance at $35.00 a month, and a retirement plan at 3% calculated on after tax incomeThe sales rep has health insurance paid by the company, life insurance paid by the company and retirement plan at $ a month
11 4 f - Question to answerBased on this information, which job to do now plan to take?
12 4 g - Additional needsAre there any other factors that could affect the accuracy of the final net income?Are there any other factors that you may want to consider when choosing which job you would take? What are they and why are they important?
13 Job scenario 2 You are considering two job offers Full time permanent position that pays an annual income of $55,000A full time contract position that pays $29.00 an hourFill in the chart for questions 1a-1c
14 1 d - Question to answerBase on the gross monthly income, which job will you take and why?
15 Taxes Federal taxes: 15% State taxes: 7% FICA: 7.65% **contract jobs are self- employed. You are required to pay FICA for yourself and for the employer.Calculate the taxes and after tax income in boxes 2a-2f
16 2 g - Question to answerBased on this new information and the after tax income levels, which job will you now take and why?
17 BenefitsPermanent position – health care cost $95.00 a month, 4% retirement plan after tax calculatedContract position – health care cost of $ a month, 8% retirement plan after tax calculatedCalculate the benefit contributions from your check in boxes 3a-3d
18 3 e - Question to answerBased on the final net income and all of the previous information, which job will you take and why?Did you change your mind throughout the process? What items made you change your mind?Turn in the chart and the paper with the answers to all questions attached to each other.
19 Journal 7three people are paid $7.00 an hour. They each get a gross pay of $ for their work.1st person - federal tax at 15%2nd person - federal tax at 10%3rd person - federal tax at 3%.Calculate their tax, and their take home after tax for each person -Why are the three people at different rates?
20 DiscussionDiscuss with your neighbor the reasons you came up with for the different rates.
21 Answer the following on a separate piece of paper? What are things that are important to you for considering a job?Rank the benefits that you listedWhat items is a must in order to take the job?What items are not as critical?