Unit 43 Paycheck Calculation. Basic Principles of Paycheck Calculation Two main terms are used regarding payroll: gross pay and net pay. –Gross pay is.

Slides:

Advertisements

Similar presentations

Copyright © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 6-1.

Advertisements

Home.

Income Tax Withholding Section 6.4. Employee’s Withholding Allowance Certificate (IRS W-4 form) Form on which employee states marital status and number.

Compounding Interest You are interested in opening a savings account that pays interest at a rate of 6% compounded annually. You deposit $523 as your starting.

Payroll Accounting Chapter 12.

Prepared by Charlie Cook The University of West Alabama © 2009 South-Western, a part of Cengage Learning Payroll Records: Assignments Chapter 10.

NEXT Death and Taxes NET PAY NOTES What things are certain in life?

Lawns R Oklahoma State Department of Education.

Payroll Concepts and Procedures – Employee Taxes

Business Math Assignment Press F5 to begin to playing this slide show.

Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Chapter 9 Employee Earnings, Deductions, and Payroll.

McGraw-Hill/Irwin ©2008 The McGraw-Hill Companies, All Rights Reserved Chapter 9 Payroll.

LESSON 12-2 Determining Payroll Tax Withholding

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 12-1 Preparing Payroll Time Cards.

CHAPTER TWENTY SIX PAYROLL PROCEDURES McGraw-Hill/Irwin Accounting Fundamentals, 7/e © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved

Copyright © 2015, 2011, and 2007 Pearson Education, Inc. 1 Chapter 6 Payroll Section 4 Income Tax Withholding.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 12-1 Preparing Payroll Time Cards.

Preparing Payroll Records Preparing Payroll Time Cards Salary – money paid for employee services Pay period – period covered by a salary payment.

Home. Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. What it is Standard: 6.0 The student will prepare payroll records, taxes, and.

JEOPARDY TermsSalary, Overtime & Commission Take-Home Pay Benefits & Expenses RandomsDeductions $100 $200 $300 $400 $500 Let’s play! ***

CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 3-1 Completing Payroll Records for Employee Earnings and Deductions.

2.1 Deductions from the Gross Pay

Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.Glencoe Accounting Computing Gross Pay Calculating Gross Earnings Section 12.1 gross.

Section 2Payroll Deductions What You’ll Learn  Why deductions are calculated and reported.  How to calculate deductions required by the federal government.

Payroll Accounting Making Accounting Relevant Businesses issue payroll checks to their employees to compensate them for work performed. Making Accounting.

CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 3-1 Completing Payroll Records for Employee Earnings and Deductions.

Pay and Taxes INVESTIGATE WHAT IMPACTS YOUR PAYCHECK AND PERSONAL TAXES ©2012 National Endowment for Financial Education | Lesson 3-3: Pay and Taxes 1.

Annual Wage / Salary How much a person is paid in a year Wages & Salaries 12 months in a year 52 weeks in a year.

GOALS BUSINESS MATH© Thomson/South-WesternLesson 2.1Slide 1 2.1Deductions from Gross Pay Find federal withholding tax deductions Calculate social security.

REQUIRED DEDUCTIONS Money subtracted from your gross pay for taxes by the government, also called payroll taxes: Federal Taxes State Taxes FICA (Social.

LESSON 12-1 Preparing Payroll Time Cards

SECTION 2-6 Statement of Earnings pp

Preparing Payroll Records

$$$.  How much a person earns is usually expressed as an annual amount. For example, $ annually  Annual = 1 year = 12 months = 52 weeks  However,

Unit 2 Lesson 2 Remediation 1. The Earnings Section The Deduction Section The Personal Information Section  Parts of a paycheck stub.

CALCULATING NET MONTHLY INCOME. STEPS TO CALCULATING NET MONTHLY INCOME Step 1: Pay Rate X Hours Worked = Gross Weekly Income Step 2: Gross Weekly Income.

Do Now… Computer Whiz Carl works at Circuit City. I think I know, check my answer Carl worked 12 hours for an hourly rate of $7.50 The Federal Tax Rate.

Understanding Paychecks Where Does Your Money Go?.

Payroll Accounting Making Accounting Relevant Businesses issue payroll checks to their employees to compensate them for work performed. Making Accounting.

UNDERSTANDING YOUR PAYCHECK

Unit 2 Lesson 2 Notes 1 Paystubs Where is my money?

Lesson 13: Net Pay Consumer Math: p When employees receive their paychecks, they should know that the check does not include their full earnings,

Gross Income the total amount of money one earns Ex. $6.15 an hour Multiplied by 40 hrs. per week_______________ Multiplied by 52 weeks per year________________.

Multiplication of Decimal Fractions STEPS : 1. Count the number of places BEHIND the decimals 2. Treat the problem like you are multiplying whole numbers.

Paychecks: Using Your Money Wisely Chapter 2. Calculating Earnings  Wage- is a dollar amount per hour that you get paid for doing work  Gross Pay- total.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 3-1 Completing Payroll Records for Employee Earnings and Deductions.

Basic Goals of Payroll System  Prepare and issue payroll checks  Produce records for accounting purposes and reporting to government and management.

A plan for managing money during a given period of time Financial Roadmap.

Tax Unit Study Guide for YTP 12 Semester 2 Final Exam.

Budget Notes Gross Income: the total amount of money one earns Ex. $7.25 an hour Multiplied by 40 hrs. per week______________ Multiplied by 52 weeks per.

PAYROLL ACCOUNTING Chapter 12. Using a Payroll System  Payroll – list of the employees and the payments due to each for a pay period  Pay Period – the.

Payroll Unit Terms Write down as many payroll terms or payroll taxes that you can think of in 2 minutes. Ready, Set, Go!

Taxes and Your Paycheck Career and Financial Management 2.

Prepared by Johnny Howard © 2015 South-Western, a part of Cengage Learning.

Sales and Income Tax. Sales tax – a tax that is added to the cost of goods or services based on the percentage of the cost. Income – wages earned from.

Figuring Your Paycheck Life Choices _____. Introduction Main reason most of us work is to _____ Paychecks are used to pay for _____ Important to know.

Lesson 1: Reading a Pay Stub. Objectives: Identify sections of a pay stub Determine how to calculate net pay Recognize various paycheck deductions.

Processing Payroll Review. Lesson 12-1 Calculate regular hours. 1 1 Calculate overtime hours. 2 2 Calculate total hours. 3 3.

Practical Math Applications © Cengage Learning/South-Western Practical Math Applications © 2011 Cengage Learning. All rights reserved. May not be scanned,

Payroll Concepts and Procedures – Employee Taxes

Business Math Assignment

JOE WORKED 40 HOURS THIS WEEK. HE EARNS $15.75 PER HOUR

Journal You can choose whether you want to be paid $50,000 salary for the whole year of $20 an hour for however long you work. You will get time and a.

© 2015 Cengage Learning. All Rights Reserved.

Personal Financial Literacy

Business Math Assignment

Payroll Accounting $ $ $ $ Making Accounting Relevant Chapter 12

Business Math Assignment

Presentation transcript:

Unit 43 Paycheck Calculation

Basic Principles of Paycheck Calculation Two main terms are used regarding payroll: gross pay and net pay. –Gross pay is the total amount of money earned for hours worked. –Net pay, often called “take-home pay,” is the amount of money left after all deductions have been subtracted from the gross pay.

Calculating Gross Pay To determine gross pay, multiply the wage per hour times the number of hours worked. Overtime pay is usually calculated at time and a half or double time. –If overtime is one and a half, multiply the overtime hours by 1.5 and then multiply by the wage per hour. –For double time, multiply the overtime hours by two and then multiply by the wage per hour.

Calculating Net Pay To determine net pay, individual deductions must be calculated first. –Tables are used to determine the appropriate deduction. –Use the most recent tax tables available.

Calculating Net Pay To calculate the deduction for state income tax, similar tables are available in many states. –In other states, the state income tax is a percent of gross income and the deduction is determined by multiplying the state percent times the gross pay.

Calculating Net Pay The deduction for FICA (Social Security) includes 6.2% of the first $106,800 income and a Medicare deduction of 1.45% of the total in income for a total deduction of 7.65%, or in decimals. –The gross pay is multiplied by this percent to obtain the correct deduction for FICA.

Calculating Net Pay City or township taxes are usually a percent of gross income and are calculated the same way state tax is calculated. To calculate the net pay, all of the deductions must be subtracted from the gross pay.

Basic Principles of Paycheck Calculation Example: A geriatric assistant earns a gross pay of $ for one week. His state income tax is 2 ½ percent, or when converted to decimals. What is the deduction for state income tax? Gross Pay x Percent of Tax = Deduction for State Tax $ x (2 ½ %) = $ $14.03 = Deduction for State Tax

Practical Problem A registered nurse (RN) works 47.5 hours at an hourly wage of $ He earns time and a half for all hours over 40 hours. What is his gross pay?

Practical Problem Hourly wage x hours worked = regular gross pay 40 x $28.72 = $1, Hourly wage x hours worked x 1.5 = overtime gross pay $28.72 x 7.5 x 1.5 = $ Regular gross pay + overtime gross pay = total gross pay $1, $ = $1, The RN’s gross pay is $1,