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The truth about your paycheck
Gross vs Net Pay
Taxes
• Federal 10 or 15% (details)• Social Security 6.2% (up to $6,622)• Medicare 1.45%• State 3.07%• Local 1%• Unemployment .06% (up to $500)• Disability (not in PA)
Deductions
• Union Dues• Health Insurance• Personal disability• Savings Plans• Purchase vacation time
How do you figure it?
• You work 30 hours at $7.25/hour.• You earn: $217.50• Subtract – Federal tax: $217.50 x 15% = 32.63 184.87– Social Sec: $217.50 x 6.2% = 13.49 171.38– Medicare: $217.50 x 1.45% = 3.15 168.23– State tax: $217.50 x 3.07% = 6.68 161.55– Local taxes: $217.50 x 1% = 2.18 159.37
How do you figure it?
• You work 40 hours at $15/hour.• You earn: $600• Subtract – Federal tax: $600 x 15% = 90.00 510.00– Social Sec: $600 x 6.2% = 37.20 472.80– Medicare: $600 x 1.45% = 8.70 464.10– State tax: $600 x 3.07% = 18.42 445.68– Local taxes: $600 x 1% = 6.00 439.68
Deductions
• Earnings $ 439.68• Union Dues $20/week
419.68• Health Insurance $50/week
369.68So, starting with $600 a
week, your actual take home, or net pay, after taxes but before savings, is $369.68.
That’s 62%.
So, starting with $600 a week, your actual take home,
or net pay, after taxes but before savings, is $369.68.
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.