The truth about your paycheck Gross vs Net Pay

Taxes Federal 10 or 15% (details) Federal 10 or 15% (details)details Social Security 6.2% (up to $6,622) Social Security 6.2% (up to $6,622) Medicare 1.45% Medicare 1.45% State 3.07% State 3.07% Local 1% Local 1% Unemployment.06% (up to $500) Unemployment.06% (up to $500) Disability (not in PA) Disability (not in PA)

Deductions Union Dues Union Dues Health Insurance Health Insurance Personal disability Personal disability Savings Plans Savings Plans Purchase vacation time Purchase vacation time

How do you figure it? You work 30 hours at $7.25/hour. You work 30 hours at $7.25/hour. You earn: $ You earn: $ Subtract Subtract – Federal tax: $ x 15% = – Social Sec: $ x 6.2% = – Medicare: $ x 1.45% = – State tax: $ x 3.07% = – Local taxes: $ x 1% =

How do you figure it? You work 40 hours at $15/hour. You work 40 hours at $15/hour. You earn: $600 You earn: $600 Subtract Subtract – Federal tax: $600 x 15% = – Social Sec: $600 x 6.2% = – Medicare: $600 x 1.45% = – State tax: $600 x 3.07% = – Local taxes: $600 x 1% =

Deductions Earnings $ Earnings $ Union Dues $20/week Union Dues $20/week Health Insurance $50/week Health Insurance $50/week So, starting with $600 a week, your actual take home, or net pay, after taxes but before savings, is $ That’s 62%. So, starting with $600 a week, your actual take home, or net pay, after taxes but before savings, is $ That’s 62%.

Playing with the Numbers Using Excel, we’re going to experiment with numbers and see how formulas can do the work for you. Using Excel, we’re going to experiment with numbers and see how formulas can do the work for you.Excel