1. My Paycheck Calculating Gross Pay Identifying Deductions/Withholding Calculating Net Pay

2. HOURLY Shawna Jackson is a mail clerk. She earns $8.40 per hour. Last week she worked 40 hours, and this week she worked 39 ½ hours. What is her regular straight-time pay? Shawna Jackson is a mail clerk. She earns $8.40 per hour. Last week she worked 40 hours, and this week she worked 39 ½ hours. What is her regular straight-time pay? STEP 1: Find regular straight-time pay Regular Hours Worked x Hourly Rate of Pay

3. 40 x $8.40 = $336.00 39.5 x $8.40 = $331.80 STEP 1: Find regular straight-time pay Regular Hours Worked x Hourly Rate of Pay

4. OVERTIME Alonso Perez is paid $8.20 an hour for a regular 40- hour work week. His overtime rate is 1 ½ times his regular hourly rate (or time-and-a-half). This week Perez worked his regular 40 hours plus 10 hours overtime. What is his total pay? Alonso Perez is paid $8.20 an hour for a regular 40- hour work week. His overtime rate is 1 ½ times his regular hourly rate (or time-and-a-half). This week Perez worked his regular 40 hours plus 10 hours overtime. What is his total pay? STEP 1: Find regular straight-time pay Regular Hours Worked x Hourly Rate of Pay STEP 2: Find overtime rate per hour 1.5 (or could be 2 or 3) x Hourly Rate of Pay STEP 3: Find total overtime pay Overtime rate per hour x # of overtime hours worked STEP 4: Find total pay Regular straight-time pay + Overtime pay

5. 40 x $8.20 = $328 1.5 x $8.20 = $12.30 per overtime hour worked $12.30 x 10 = $123.00 $328.00 + $123.00 = $451.00 STEP 1: Find regular straight-time pay Regular Hours Worked x Hourly Rate of Pay STEP 2: Find overtime rate per hour 1.5 (or could be 2 or 3) x Hourly Rate of Pay STEP 3: Find total overtime pay Overtime rate per hour x # of overtime hours worked STEP 4: Find total pay Regular straight-time pay + Overtime pay

6. SALARY Beth Huggins is a computer programmer. Her annual (yearly) salary is $42,648. What is her monthly gross pay? What is her weekly gross pay? Beth Huggins is a computer programmer. Her annual (yearly) salary is $42,648. What is her monthly gross pay? What is her weekly gross pay? STEP 1: Find salary per pay periodpay period Annual Salary / Number of pay periods STEP 1: Find yearly salary Salary per pay period x Number of pay periods

7. $42,648 / 12 = $3554.00 $42,648 / 52 = $820.15 STEP 1: Find salary per pay period Annual Salary / Number of pay periods STEP 1: Find yearly salary Salary per pay period x Number of pay periods $3554.00 x 12 = $ 42,648 $820.15 x 52 = $ 42,648

8. Pay Periods Weekly – Paid every week Weekly – Paid every week (52 times a year) (52 times a year) Bi-Weekly – Paid every other Friday; every 2 weeks Bi-Weekly – Paid every other Friday; every 2 weeks (26 times a year) (26 times a year) Semi-Monthly – Paid twice a month; on the same two days (1 st and 15 th OR 15 th and 30 th ) Semi-Monthly – Paid twice a month; on the same two days (1 st and 15 th OR 15 th and 30 th ) (24 times a year) (24 times a year) Monthly – Paid once a month Monthly – Paid once a month (12 times a year) (12 times a year)

9. PIECE WORK Ramon Hernandez works for National Cabinet Company. He is paid $8.00 for each cabinet he assembles. Last week he assembled 45 cabinets. This week he assembled 42. What is his gross pay for each week? Ramon Hernandez works for National Cabinet Company. He is paid $8.00 for each cabinet he assembles. Last week he assembled 45 cabinets. This week he assembled 42. What is his gross pay for each week? STEP 1: Find piece work gross pay Number of items completed x Pay per item

10. 45 x $8.00 = $360 42 x $8.00 = $336 TOTAL 360+336 = $696 STEP 1: Find piece work gross pay Number of items completed x Pay per item

11. COMMISSION Milton Arps sells real estate at a 7 ½ percent straight commission. Last week his sales totaled $290,000. What was his commission? Milton Arps sells real estate at a 7 ½ percent straight commission. Last week his sales totaled $290,000. What was his commission? STEP 1: Find total commission Total amount in sales x Commission rate

12. $290,000 x 7.5% = $21750 You can re-write 7.5% as a decimal by moving the decimal two places to the left which would look like this:.075 STEP 1: Find total commission Total amount in Sales x Commission Rate

13. Additional Practice 1.Izumi is a musician. She earns $35.00 per hour. She works 32 ½ hours. What is her regular straight-time gross pay? 2. Steve is a plumber. He earns $28.75 per hour. He works 39 ¾ hours. What is his regular straight-time gross pay?

14. Additional Practice 3. Jiwon Chang earns $11.70 per hour plus time- and-a-half for overtime. Last week he worked his regular 40 hours plus six hours on the weekend. What is his total gross pay? 4. Nadia Campana earns a regular hourly rate of $23.60. She earns double-time for work on Sundays. Last week she worked her regular 36- hour week plus 7 ½ hours on Sunday. What is her total gross pay for the week?

15. Additional Practice 5. Michelle Giuseffi is a plice officer. Her annual salary is $40,560. What is her biweekly gross pay? 6.Colin Evans is a hotel desk clerk who earns an annual salary of $21,216. What is his weekly gross pay? 7.Carol Smith earns $536.75 semi-monthly. What is her annual salary?

16. Additional Practice 8. Gabrielle Santos is a little league umpire. She earns $20 per game on weekdays and $25 per game weekends. She umpires 14 weekday games and 3 weekend games. What is her total gross pay? 9. 124 items were produced. The rate per item was $0.89. What is the total gross pay? 10.John Roberts receives a 5 ¾ percent commission on total sales for the week. This week he sold $12,000 in merchandise. What was his commission for the week?

17. Deductions / Withholding Paycheck Basics

18. Federal Withholding Tax Typically the largest tax deduction Paid to “Uncle Sam” (FED gov’t) Calculation: Varies Several Tax Brackets www.irs.gov Examples

19. State Withholding Tax Paid to the state PA = 3.1% of Gross Pay Not all states have this income tax * Examples?

20. Local Withholding Tax Paid to local municipalities In Canonsburg = 1% of Gross Pay Not all employers deduct, but you still must pay Examples?

21. Social Security Tax Sometimes called FICA (Federal Insurance Contributions Act) Government sponsored retirement plan 6.2% of Gross Pay How it works: BABY BOOMERS

22. Medicare Government sponsored health insurance plan 1.45% of Gross Pay

23. Retirement Plan Most common 401K type of employer- sponsored defined contribution retirement plan

24. Insurance Health Most valuable because employer contributes to the cost Life Vision Dental

25. Other Savings Christmas Club accounts PA SUI Occupational Worker’s Compensation Union Dues

26. NET PAY Gross Pay – Deductions = NET PAY Gross Pay – Deductions = NET PAY