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Income Lesson One - Plan Your Future

The document provides examples of calculating net monthly income for three individuals - Jamal who works part time at a recreation center, Trey who works part time as a college student, and Marie who works as a college professor. It lists their gross monthly incomes and monthly tax deductions to determine their net monthly incomes.

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JOHN MENDOZA GALLEGOS
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© © All Rights Reserved
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Download as PDF, TXT or read online on Scribd
885 views

Income Lesson One - Plan Your Future

The document provides examples of calculating net monthly income for three individuals - Jamal who works part time at a recreation center, Trey who works part time as a college student, and Marie who works as a college professor. It lists their gross monthly incomes and monthly tax deductions to determine their net monthly incomes.

Uploaded by

JOHN MENDOZA GALLEGOS
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Paycheck Calculations

Using the information below, calculate each worker’s net monthly income (NMI). GAI is gross annual income, and
GMI is gross monthly income.

Jamal works at the recreation center 15 hours a week during the school year. He earns $8.75 an hour.
In a typical month, he works 63 hours. Calculate his monthly taxes below.

Gross Monthly Income $ 551.25

Monthly Federal Income Tax (10%) $ 55.13


Monthly Social Security (FICA) (6.2%) $ 34.18
Monthly Medicare (1.45%) $ 7.99
Monthly State Tax (4%) $ 22.05
Monthly Local Tax (0.1%) $ 0.55
Total Monthly Deductions $ 119.90

Jamal’s NMI = $ 431.35

••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •
A college student, Trey works part time for an annual salary of $13,500 a year.

Gross Monthly Income $ 1,125.00

Monthly Federal Income Tax (11.6%) $ 130.50 168.75


Monthly Social Security (FICA) (6.2%) $ 69.75 69.75
Monthly Medicare (1.45%) $ 16.31 16.31
Monthly State Tax (4%) $ 45.00 45.00
Monthly Local Tax (0.1%) $ 1.13 1.12
Total Monthly Deductions $ 262.69 300.93

Trey’s NMI = $ 862.31 824.07


•••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •

Marie is a college professor. Her annual salary is $66,000.

Gross Monthly Income $ 5,500.00

Monthly Federal Income Tax (18.7%) $ 1,028.50


Monthly Social Security (FICA) (6.2%) $ 341.00
Monthly Medicare (1.45%) $ 79.75
Monthly State Tax (4%) $ 220.00
Monthly Local Tax (0.1%) $ 5.50
Total Monthly Deductions $ 1,674.00

Marie’s NMI = $ 3,825.00

£. Junior
I.A. Achievement" JA Finance Park ®
15
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