2. How do taxes and other deductions benefit our
society while reducing our gross paycheck?
3. Accumulated Earnings (YTD earnings) – The
amount of money you have earned this Year To
Date.
Net Pay – the amount you earn after all
deductions and taxes are taken out.
4. Social Security Taxes
Old Age Survivors and Disability Insurance (OASDI) falls within
the parameters of FICA.
OASDI is calculated as your gross earnings times 6.2%.
*Please note that this calculation does not make any
assumptions as to the total FICA/OASDI already paid for the
current year. For 2009, incomes over $106,800 that have
already had the maximum FICA/OASDI amount of $6,621.60
withheld will not have additional FICA OASDI withholdings.
5. Your gross bi-weekly paycheck is worth
$2,000.
Question: How much FICA/OASDI are
you expected to pay?
6. Your gross bi-weekly pay check is worth
$4,300.
Question: How much FICA/OASDI are
you expected to pay?
7. FICA Medicare is calculated as the gross
earnings times 1.45%. Unlike FICA/OASDI there
is no annual limit to FICA Medicare deductions.
8. Your gross bi-weekly paycheck is worth
$2,000.
Question: How much FICA Medicare are
you expected to pay?
9. Your gross bi-weekly paycheck is worth
$4,300.
Question: How much FICA Medicare
are you expected to pay?
10. Federal income tax withholdings were calculated from the
following:
Multiplying taxable gross wages by the number of pay
periods per year to compute your annual wage.
Subtracting the value of allowances allowed (for 2009, this
is $3,650 multiplied by withholding allowances claimed).
Determining your annual tax by using the tables below
(single and married rates, respectively).
Dividing the amount of tax by the number of pay periods per
year to arrive at the amount of federal withholding tax to be
deducted per pay period.
11. Single Withholding Rates
Annual taxable income Annual Withhold additional % of
between these amounts withholding income over this amount
$0.00 $2650 $0
$2650 $10,400 $0 10% $2,650
$10,400 $35,400 $775 15% $10,400
$35,400 $84,300 $4,525 25% $35,400
$84,300 $173,600 $16,750 28% $84,300
$173,600 $375,000 $41,754 33% $173,600
$375,000 No limit $108,216 35% $375,000
**This information is valid from the IRS for 2009
12. Your gross bi-weekly pay check is worth
$2,000.
How much federal tax will you be expected
to pay?
13. Your gross bi-weekly paycheck is worth
$4,300.
Question: How much federal tax
are you expected to pay?
14. Pennsylvania State tax is 3.07%
Local Tax is about 1%. This varies upon the
township you live in.
**Note: Make sure you check with your local township
tax agency for accurate tax rates.
15. Your gross bi-weekly pay check is worth
$2,000.
How much state and local tax will you
be expected to pay?
16. Your gross bi-weekly paycheck is worth
$4,300.
Question: How much state tax and local tax
are you expected to pay?
17. How much is your gross income for the year
if your net biweekly paycheck is $2000
minus the following deductions FICA/OASDI,
FICA Medicare, state and local tax?
.
Question: How much is your gross income?
18. Health Insurance – Your premium will vary
depending on your employer
Union Dues – These can be automatically
deducted if you and your employer decide this.
Child Support – This is the only other item that
can be deducted from your check without your
consent.
19. Retirement or Pension Plans – Best to put
money away now so you might be able to
retire by the time you are 72
20. How do taxes and other deductions benefit our
society while reducing our gross paycheck?
