Gross Pay/Net Pay

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What is Gross Pay?

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Gross Pay is the total amount of money earned by an employee before any deductions are made.

Tags

CCSS.7.RP.A.3

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What is Net Pay?

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Net Pay is the amount of money an employee takes home after all deductions, such as taxes and insurance, have been subtracted from Gross Pay.

Tags

CCSS.6.RP.A.3D

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What does FIT stand for?

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FIT stands for Federal Income Tax.

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What does FICA stand for?

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FICA stands for the Federal Insurance Contributions Act, which includes Social Security and Medicare taxes.

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Do employees in Florida pay State Income Tax?

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No, Florida does not have a state income tax.

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What is the purpose of deductions from Gross Pay?

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Deductions are taken from Gross Pay to cover taxes, insurance, retirement contributions, and other benefits.

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How do you calculate the annual deduction for state income tax?

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To calculate the annual deduction for state income tax, multiply the annual gross pay by the state income tax rate.

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CCSS.7.RP.A.3

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If an employee's Gross Pay is $54,800 and the state income tax rate is 5%, what is the annual deduction for state income tax?

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The annual deduction for state income tax would be $2,740.

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CCSS.7.RP.A.3

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What is the formula to calculate health insurance deductions from Gross Pay?

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Health insurance deductions can be calculated by taking the total annual cost of health insurance, multiplying it by the employee's share, and dividing by the number of pay periods.

Tags

CCSS.7.RP.A.3

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If the annual cost of health insurance is $4,200 and the employer pays 80%, how much does the employee pay?

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The employee pays $840 annually, which is $35 per semimonthly pay period.

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CCSS.6.RP.A.3C