Mrs. Badr's Class



Unit 2 Calculations: Day 1Name: ______________________________________ Hour: _______________Gross PayEmployees who receive pay based on the number of hours that they work are paid an hourly rate. To find the gross pay for an hourly employee, multiply the number of hours that the employee worked by the hourly rate.Gross Pay =Number of Hours Worked X Hourly RateExample 1: Jane works as a nurse and is paid $12.50 per hour. Last week, Jane worked 9 hours per day for 4 days. What is Jane’s gross pay?Overtime WagesOvertime pay is earned by some employees for hours worked beyond the regular workday or workweek. For example, a worker may be paid overtime for any hours worked beyond 40 hours in a week or 8 hours in a day. Often, an employer will pay time-and-a-half rate for overtime, although some employers pay double-time rate for overtime or working on a holiday.Time-and-a-Half Rate =1.5 X Regular Pay RateDouble-Time Rate = 2 X Regular Pay RateExample: Chelsey’s hourly rate is $8.25. Her employer will pay time-and- a-half if she works more than 8 hours in a day, and will pay double-time if she works on a holiday. What are her time-and-a-half and double-time rates of pay? What is her gross pay?Example: Josef is paid $10.75 per hour for regular time, and time-and-a half for hours beyond 40 hours per week. If Josef worked 8 hours, 12 hours, 7 hours, 10 hours, and 9 hours in one week, what is his gross pay?SalaryA salary is a fixed amount of pay for each pay period. A salaried employee does not receive overtime pay. In addition, a salaried employee gets paid the same amount even if the employee uses sick days or vacation days. Salaries are often expressed as a yearly amount, but the salary is paid out monthly, bi-monthly, or semi-monthly, bi-weekly, or weekly.Monthly: Once a month, 12 times a yearBi-monthly or semi-monthly: Twice a month, 24 times a yearBi-weekly: Every other week, 26 times a yearWeekly: Once a week, 52 times a yearExample: Willa earns a salary of $33,000 per year. She is paid monthly. What is her gross pay per month?Unit 2 Calculations: Day 1Name: ______________________________________ Hour: _______________Gross Pay HomeworkDirections: Must be done on a separate sheet of paper. Show all of your work and circle your final answer.1. Sydney worked 8 hours a day for 5 days. What is Sydney’s gross pay if her hourly rate is $16.85 per hour?2. Jared gets paid $6.75 per hour. Last week he worked the following hours: Monday 9.5 hours, Tuesday 5 hours, Wednesday 8.75 hours, Friday 10 hours. What is Jared’s gross pay?3. Clint earns $25.50 per hour as a mechanic. He is paid time-and-a half for working more than 8 hours per day. Yesterday, he worked 11 hours. What is his gross pay for the day?4. Yvette worked 50 hours last week. She earns time-and-half for any hours over 40 and up to 45 hours in a week and double-time for any hours over 45. If her regular pay is $10.75 per hour, what are her gross wages for last week?5. Melissa earns a salary of $2,000 per month, paid semi-monthly. What is her gross pay each pay period?6. Max is offered a job that pays $36,000 per year. He estimates that he needs monthly gross wages of $3,250 to cover his living expenses. Does the job pay enough?7. Sydney is considering two jobs. One job pays $45,000 per year. The other job pays a weekly salary of $950. Which job pays better?Unit 2 Calculations: Day 2Name: _____________________________________Flat rate taxes we pay out of each check. (this should also be the % you pay flat rate out of your yearly salary)Medicare 1.45%Note: Medicare + Social Security Tax together is known as FICA (7.65%)Federal Income Contributions Act (FICA)Social Security Tax 6.2%Michigan State Tax (flat rate all income levels)4.25%Federal Income TaxTax rateSingle filers10%Up to $9,22515%$9,226 to $37,45025%$37,451 to $90,75028%$90,751 to $189,30033%$189,301 to $411,50035%$411,501 to $413,20039.6%$413,201 or moreUsually you are allowed to do withhold federal income tax, for this assignment you will you the straight calculation.Example: Sara makes $62,000 per year. How muchshould she expect to pay in FICA, State tax,and federal tax? How much is her net pay?Homework: Day 2Directions: Must be done on a separate sheet of paper. Show all of your work and circle your final answer.1. Robbie gets a salary of $148,328 per year. How much will he pay in Michigan state tax?2. Jane gets a salary of $42,500 per year. How much should she expect to pay in federal income tax?3. Tommy gets a salary of $55,482. How much will he pay in social security tax?4. Joanne gets a salary of $22,688. How much will she pay into Medicare?’5. Bill made $1,768,252.24 last year. How much should he expect to pay in federal income tax?6. Sunny gets a salary of $353,120. How much should he expect to pay in deductions (Medicare, social security, state and federal taxes)?7. Lisa gets a salary of $72,500. What is her expected net pay?Calculating Take Home Pay EXAMPLE Name: ________________________________Flat rate taxes we pay out of each check. (this should also be the % you pay flat rate out of your yearly salary)Medicare 1.45%Note: Medicare + Social Security Tax together is known as FICA (7.65%)Federal Income Contributions Act (FICA)Social Security Tax 6.2%Michigan State Tax (flat rate all income levels)4.25%Federal Income Tax (single, claiming 0 dependents)Tax rate10%15%25%28%33%35%39.6%Annual SalaryUp to $9,225$9,226 to $37,450$37,451 to $90,750$90,751 to $189,300$189,301 to $411,500$411,501 to $413,200$413,201 or moreFill in the blank boxes below.Job: TeacherYearly Salary gross:Monthly Salary gross:1) If you pay $130 into your healthcare plan and $200 into your 401k what is your taxable income per month?2) Calculate each of your deductions for one month: A) FICA:B) State tax:C) Federal withholding:D) Total deductions:3) What is your net pay for your monthly check?4) What percentage of gross pay is taken home per month?Calculating Take Home Pay for Your Goal Job Name: ________________________________Flat rate taxes we pay out of each check. (this should also be the % you pay flat rate out of your yearly salary)Medicare 1.45%Note: Medicare + Social Security Tax together is known as FICA (7.65%)Federal Income Contributions Act (FICA)Social Security Tax 6.2%Michigan State Tax (flat rate all income levels)4.25%Federal Income Tax (single, claiming 0 dependents)Tax rate10%15%25%28%33%35%39.6%Annual SalaryUp to $9,225$9,226 to $37,450$37,451 to $90,750$90,751 to $189,300$189,301 to $411,500$411,501 to $413,200$413,201 or moreFill in the blank boxes below.Job you selected:Yearly Salary gross:Monthly Salary gross:1) If you pay $130 into your healthcare plan and $200 into your 401k what is your taxable income per month?2) Calculate each of your deductions for one month: A) FICA:B) State tax:C) Federal withholding:D) Total deductions:3) What is your net pay for your monthly check?4) What percentage of gross pay is taken home per month?Unit 2 REVIEWName: _____________________________________Flat rate taxes we pay out of each check. (this should also be the % you pay flat rate out of your yearly salary)Medicare 1.45%Note: Medicare + Social Security Tax together is known as FICA (7.65%)Federal Income Contributions Act (FICA)Social Security Tax 6.2%Michigan State Tax (flat rate all income levels)4.25%Federal Income Tax (single, claiming 0 dependents)Tax rate10%15%25%28%33%35%39.6%Annual SalaryUp to $9,225$9,226 to $37,450$37,451 to $90,750$90,751 to $189,300$189,301 to $411,500$411,501 to $413,200$413,201 or moreDirections: Show all of your work and circle your final answer.1. Laney worked 8 hours a day for 5 days. What is Sydney’s gross pay if her hourly rate is $12.50 per hour?2. Max gets paid $11.25 per hour. Last week he worked the following hours: Monday 8.5 hours, Tuesday 4 hours, Wednesday 6.75 hours, Friday 8 hours. What is Jared’s gross pay?3. Jason earns $25.50 per hour as a mechanic. He is paid time-and-a half for working more than 8 hours per day. Yesterday, he worked 11 hours. What is his gross pay for the day?4. Max is offered a job that pays $72,000 per year in Chicago. He estimates that he needs monthly gross wages of $5,250 to cover his living expenses. Does the job pay enough?5. Sora is considering two jobs. One job pays $40,000 per year. The other job pays a weekly salary of $850. Which job pays better?6. Spencer gets a salary of $32,428 per year. How much will he pay in Michigan state tax?7. Jack gets a salary of $52,176 per year. How much should she expect to pay in federal income tax?8. Joel gets a salary of $32,482. How much will he pay in social security tax?9. Tiffany gets a salary of $65,688. How much will she pay into Medicare?10. Sunny gets a salary of $142,355. How much should he expect to pay in deductions (Medicare, social security, state and federal withholding)?11. Amber is single and has a taxable income of $42,265. Her employer withheld $3,289 for federal income tax. How much Federal income tax is due? Is Amber getting a refund or does she have an amount due? How much (refund or amount due)? ................
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