1. Salary vs. Hourly Wage What is a Salary? What is an Hourly Wage? Is it the same in all states?

2. Salary is a set amount an employer pays an employee for a job. The hours worked do not matter, you still get paid the same. This applies to most businesses and not to the Federal Government.

3. Hourly Wage is an amount paid for each hour an employee works. How do you find the amount you make for each day or week or month you work?

4. Salary IF YOU MAKE $55,000/YEAR, HOW MUCH WOULD YOU MAKE A MONTH? NOW HOW MUCH OF IT WOULD BE AFFECTED BY TAXES?

5. You will be charged 13.38% for federal taxes You will be charged 6.2% for Social Security taxes You will be charged 1.45% for Medicare taxes And you have to consider the state taxes…..let’s just say it is 5% of you gross.

6. So your take home pay would be  $55,000 x 13.38% =  $55,000 x 6.2% =  $55,000 x 1.45% =  $55,000 x 5.0% =  $55,000 – federal taxes – social security – medicare – state taxes =  Divide that number by what number to get monthly pay.

7. Minimum Wage in Louisiana is $7.25 The national average is $7.25 and has been since 2009. So let’s do the math….

8. 40 hour week x 7.25 = $290.00 52 week’s/year x $290.00 = 15,080 What would you make each month? 15,080 ÷ 12 = 1256.66 Most likely you would pay very little in taxes….but you would still have to pay Social Security and medicare….could you live on this amount???