Paycheck Day 2

Job Types

Three Basic Job Types

Salary

Hourly

Commission

Example: Salary

JoAnn was hired for a full - time position as editor that pays a salary of $37,500 per year.

Find JoAnn's gross annual income and gross monthly income.

Example: Hourly

Josh was hired as a full-time position as an e-Learning designer that pays an hourly wage of $26.50. The job is five day a week, 8 hours a day.

Find Josh's gross annual income and gross monthly income.

Example: Commission

Brooke was hired as a sales representative that pays a 5% commission. Brooke typically sells an average of $100,000 per month in textbooks.

Find Brooke's gross annual income and gross monthly income.

Example: Taxes

Use the following information:

-US Government deducts 6.2% for Social Security Tax and 1.45% for Medicare.

-Assume each person deduct 15% of gross income for Federal Income Tax.

-Assume no one lives in a state with State Income Tax.

Find the after-tax monthly income for JoAnn, Josh, and Brooke.

Type of Benefits

Some employers pay for some benefits and some do not.

Types of Benefits can include but limited to the following:

-Pay Vacation Time

-Pay Sick Leave

-Health Insurance

-Life Insurance

-Retirement Plan

Example: Monthly Take Home Pay-JoAnn

Assume everyone takes two weeks vacation (10 days) per year, averages three sick days per year and plans on purchasing life insurance and retirement plan.

JoAnn's benefits includes two weeks of paid vacation and five day paid sick leave per year, paid health insurance, life insurance costing $35 per month, and a fully paid retirement plan.

What is JoAnn monthly take home pay?

Example: Monthly Take Home Pay - Josh

Assume everyone takes two weeks vacation (10 days) per year, averages three sick days per year and plans on purchasing life insurance and retirement plan.

Josh's benefits includes five day paid vacation and three paid sick days per year, paid health insurance, life insurance costing $35 per month, and a retirement plan costing 3% of his after-tax income.

What is Josh monthly take home pay?

Example: Monthly Take Home Pay - Brooke

Assume everyone takes two weeks vacation (10 days) per year, averages three sick days per year and plans on purchasing life insurance and retirement plan.

Brooke's benefits has no vacation or sick pay, paid health insurance, paid life insurance, and a retirement plan costing $400 per month.

What is Brooke's monthly take home pay?

Poll

Which person do you believe take home the most pay?

• JoAnn

• Josh

• Brooke

Open Ended

Which job type (salary, hourly, or commission) give you the most take home pay? Why do you think that?

Multiple Choice

Miguel worked 38 hours last week and makes $50 an hour. His Federal Tax withheld was $235. His State Tax withheld was $147. His 401K contribution was $200. His Health Insurance Premium was $80. You must also calculate his Social Security and Medicare. Find out his NET PAY.

• Yikes!

• $1209.45

• $145.35

• $1092.65

Multiple Choice

What are some deductions from your pay?

• 401K

• Health Insurance

• Medicare

• Social Security

• All of the options!

Multiple Choice

Your gross pay was $567. How much is taken out for Medicare ?

• $14.45

• $8.22

• $82.20

• What is medicare?

Multiple Choice

Sonia worked 40 hours last week and made $16 an hour. What is her gross pay?

• $540

• $640

• $300

• -$600

Multiple Choice

Melinda’s gross pay is $570. If the Social Security tax is 6.2%, how much will she pay in Social Security?

• $4

• $3.53

• $35.34

• $23

Multiple Choice

Ruth earns $13.25/hour. She works 40 hours/week. $90.72 is deducted each week. What’s her net pay?

• $439.28

• $530

• $493.43

• $90.72

Multiple Choice

Sam's deductions add up to $112 a week. If her gross pay is $537 a week, what is her net pay?

• $112

• $313

• $425

• $537

Multiple Choice

Mya's net pay is $525/week. Her gross is $700. How much money is deducted from her paycheck each week?

• $525

• $125

• $175

• Nothing

Multiple Choice

What is your GROSS pay if you make $10 per hour & worked 20 hours this week?

• $100

• $200

• Unable to calculate based on information provided.

Multiple Choice

If Darien earns $120 net pay each paycheck and receives a paycheck each week, how much should he include as earnings in his yearly budget?

• $6,220

• $6,000

• $6,240

• $5,760

Multiple Choice

If your GROSS paycheck is $500. What would the amount deposited in your bank account be if you had the following deductions? $150 Taxes, $25 Social Security, $5 for dental insurance and $50 for insurance.

• $350

• $325

• $250

• None of the above.

Let's go and earn some money!!!