Income Tax Activity



Name: _________________________Income Tax ActivityWhen you work and you earn money (salaries, wages, tips, etc.), your employer is required to subtract a portion of your income and send it to the government. Depending on how much money you make, the federal government will take between 10 to 39 percent.There is also state income tax. Does your state or territory have income tax?Sample Pay Stub: The percentage of taxes you pay depends on how much money you earn.If you earn $500 every 2 weeks and the state income tax is 10 percent, your paycheck will show a net pay of $450.To Calculate Net Pay, you should take the Gross wages subtract Deductions to get your Net pay.EARNINGS STATEMENT EXAMPLECorporationPO Box 9876, Florida 32145Employee NameSocial Sec. IDEmployee IDCheck No.Pay PeriodPay DateJohn Smithxxx-xxx-111110018656604/01-04/1504/30/20163327400196850DeductionsCurrentTotalFED TAX (25%)625FICA Med (1.45%)36.25FICA-Social Security (6.2%)155State Income Tax (6%)15000DeductionsCurrentTotalFED TAX (25%)625FICA Med (1.45%)36.25FICA-Social Security (6.2%)155State Income Tax (6%)150452755205740IncomeCurrent totalGross Wages250000IncomeCurrent totalGross Wages2500Gross WagesDeductionsNet Pay2500965.251534.75Complete the following paystub with the missing information with income tax information from your state: Use the OOH to find your dream job, calculate you MONTHLY salary and figure out your net income. EARNINGS STATEMENT EXERCISECorporationPO Box 9876, Atlanta 30064Employee NameSocial Sec. IDEmployee IDCheck No.Pay PeriodPay Datexxx-xxx-111110018656604/01-04/3004/30/2016452755205740IncomeCurrent totalGross Wages00IncomeCurrent totalGross Wages3420110196850DeductionsCurrentTotalFED TAX (15%)FICA Med (1.45%)FICA-Social Security (6.2%)State Income Tax (6%)00DeductionsCurrentTotalFED TAX (15%)FICA Med (1.45%)FICA-Social Security (6.2%)State Income Tax (6%)Gross WagesDeductions TotalNet PayWhat is FICA? Why do we contribute to Social Security and Medicare?What was the dream Job that you picked? What was the gross income of your dream job? Do you think taxes are fair? Why or why not? How much total in taxes did you pay? What voluntary deduction would you recommend taking? ***If you finish early try calculating a back up job or a side job that you’d like to work! ................
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