UEI BUSINESS OFFICE ADMINISTRATION BUSINESS CALCULATIONS CAPSTONE PROJECT Name: Adan Vasquez Due Date: 3/5/2015 Instructor: Frank Ezenekwe, MBA ©2015 Adan Vasquez UEI College

Percentage Increase in Value How to Calculate Percentage Increase Knowing how to calculate percentage increase is useful in a variety of situations. For instance, in doing your tax return If you want to know how to calculate percentage increase in no time at all, just follow these steps: Write down the current value and the starting value.  Subtract the starting value from the current value.  Divide the result by the starting value Multiply the result by 100. Year 1: 400 400-450 50%400 0.125  x 100 Year 2: 450 = 50 =0.125 = 12.5% ©2015 Adan Vasquez UEI College

Payroll Deductions What they are? What your paying for Payroll deductions are amounts withheld from an employee's payroll check, and these amounts are withheld by their employer. Social Security and Medicare withholding. Federal Income Tax State income tax withholding. IRS(Internal Revenue Service). Social security and Medicare pays for retirement and disability benefits. Federal Income Tax basically is everything that funds the government. State Income Taxes that affect our everyday buildings, homes, and governmental monuments. The IRS is also another tax to fund government enforcement of the laws. ©2015 Adan Vasquez UEI College

How to Calculate Property Tax Calculating the property tax on property based on the assessed value. 1. Multiply the market value of the property by the assessed rate. $400,000×50%= $200,000 assessed value Determine the numbers of $100s in the assessed value. $200,000÷$100=2,000 Multiply the number of $100s by the tax rate per $100 to determine the amount of tax due. 2,000×$5.95=$11,900 property tax due ©2015 Adan Vasquez UEI College

How To File Tax Returns-1040 First we must obtain the sources of income and family situations in order to determine what kind of taxes you owe. Once we have filled out all of the forms we send them electronically to the IRS to receive the refund. 1.Calculate the tax levied on property based on assessed value. For property tax 2.Calculate the Federal income tax, you will need social security # and fill out a W4 form. 3. Fill out a W2 form that will show Medicare , social security, and federal income withholdings 4. Complete a 1040 Form ©2015 Adan Vasquez UEI College

How to Calculate Tax Due & Tax Refund Calculate the total income. Calculate adjusted gross income by subtracting the $2000 IRA contribution from total income. If medical expenses exceed 7.5% of adjusted gross income amount can be deducted. Find and subtract total itemized deductions. Add all deductions and subtract from Withholdings. With this amount use the tax table to find the tax due. Then subtract this number to the Withholdings and that is your refund. ©2015 Adan Vasquez UEI College

How Health & Life Insurance Works Health insurance provides protection against a portion of the costs incurred due to illness or accident. They are a fee for fee service plans. With these plans customers must file claims for each service provided. Life insurance pays out a sum of money either on the death of the insured person or after a set period. Life Insurance depends completely on the plans you choose and eligibility, for example age and the amount of coverage you want. AGE Amount of Life Insurance Age Under 21 $50,000 51-55 $25,000 30-35 $45,000 56-60 $20,000 36-40 $40,000 61-65 $15,000 41-45 $35,000 66 and over $10,000 46-50 $30,000 ©2015 Adan Vasquez UEI College

Automobile Insurance Accident Breakdown States require motor vehicle insurance for every motor vehicle owned. Some coverage are collision coverage, medical payment coverage, uninsured motorist coverage, and comprehensive coverage. Determine the compensation due after a motor vehicle accident Determine the premiums for homeowner’s insurance Calculate the payment when a fire insurance policy contains 80% coinsurance clause. ©2015 Adan Vasquez UEI College

The Purchasing Cycle & its various Elements When a small business needs office supplies, it may order directly from a retail office supply business or from a wholesaler. However, a large business may have many departments requesting supplies. It is less expensive to buy in quantity because a discount is often given. A purchase requisition is an internal order form sent to the purchasing department from another department, and used to control purchases by requiring a managers signature. A purchase order is a document issued by a buyer to a vendor listing products or services wanted. The purchase order authorizes the vendor to ship the items or services and bill for them at agreed prices and terms. An invoice is a record of the sales transaction showing the quantity of each item sold with its individual price, any added charges or discounts, the total price, and the payment terms. A receiving report lists each item received and is prepared by the person or department that receives the order when the merchandise arrives. A credit memorandum notifies the company they have received a credit on their account for the amount of the returned merchandise. A voucher check is a detachable portion showing the invoice number being paid by the check. A statement of account is a monthly statement showing transactions, balance, and credit. ©2015 Adan Vasquez UEI College

Summary Business calculations capstone project has all the highlights and key terms you need for calculating percentage increase in value, filling payroll deductions, property tax, tax returns, tax due and refund, life insurance, automobile insurance, and the purchasing cycle. Everything you need is in this PowerPoint. ©2015 Adan Vasquez UEI College