Payroll DeductionsAnd the ever dwindling pay check
   How do taxes and other deductions benefit our    society while reducing our gross paycheck?
   Accumulated Earnings (YTD earnings) – The    amount of money you have earned this Year To    Date.   Net Pay – the am...
 Social Security Taxes Old Age Survivors and Disability Insurance (OASDI) falls within  the parameters of FICA. OASDI i...
Your gross bi-weekly paycheck is worth$2,000.Question: How much FICA/OASDI are      you expected to pay?
Your gross bi-weekly pay check is worth $4,300.Question: How much FICA/OASDI are          you expected to pay?
   FICA Medicare is calculated as the gross    earnings times 1.45%. Unlike FICA/OASDI there    is no annual limit to FIC...
Your gross bi-weekly paycheck is worth$2,000.Question: How much FICA Medicare are     you expected to pay?
Your gross bi-weekly paycheck is worth $4,300.Question: How much FICA Medicare     are you expected to pay?
   Federal income tax withholdings were calculated from the    following:      Multiplying taxable gross wages by the nu...
Single Withholding RatesAnnual taxable income            Annual             Withhold additional % ofbetween these amounts ...
Your gross bi-weekly pay check is worth$2,000.    How much federal tax will you be expectedto pay?
Your gross bi-weekly paycheck is worth$4,300.   Question: How much federal tax   are you expected to pay?
   Pennsylvania State tax is 3.07%   Local Tax is about 1%. This varies upon the    township you live in.**Note: Make su...
Your gross bi-weekly pay check is worth$2,000.   How much state and local tax will yoube expected to pay?
Your gross bi-weekly paycheck is worth$4,300.   Question: How much state tax and local tax              are you expected t...
How much is your gross income for the year     if your net biweekly paycheck is $2000    minus the following deductions FI...
   Health Insurance – Your premium will vary    depending on your employer   Union Dues – These can be automatically    ...
   Retirement or Pension Plans – Best to put    money away now so you might be able to    retire by the time you are 72
   How do taxes and other deductions benefit our    society while reducing our gross paycheck?
http://www.bankrate.com/brm/calculators/tax/payhttp://www.paycheckcity.com/pages/payrollinfo.asp
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Payroll deductions

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Payroll deductions

  1. 1. Payroll DeductionsAnd the ever dwindling pay check
  2. 2.  How do taxes and other deductions benefit our society while reducing our gross paycheck?
  3. 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. 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. 5. Your gross bi-weekly paycheck is worth$2,000.Question: How much FICA/OASDI are you expected to pay?
  6. 6. Your gross bi-weekly pay check is worth $4,300.Question: How much FICA/OASDI are you expected to pay?
  7. 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. 8. Your gross bi-weekly paycheck is worth$2,000.Question: How much FICA Medicare are you expected to pay?
  9. 9. Your gross bi-weekly paycheck is worth $4,300.Question: How much FICA Medicare are you expected to pay?
  10. 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. 11. Single Withholding RatesAnnual taxable income Annual Withhold additional % ofbetween 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. 12. Your gross bi-weekly pay check is worth$2,000. How much federal tax will you be expectedto pay?
  13. 13. Your gross bi-weekly paycheck is worth$4,300. Question: How much federal tax are you expected to pay?
  14. 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. 15. Your gross bi-weekly pay check is worth$2,000. How much state and local tax will yoube expected to pay?
  16. 16. Your gross bi-weekly paycheck is worth$4,300. Question: How much state tax and local tax are you expected to pay?
  17. 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. 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. 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. 20.  How do taxes and other deductions benefit our society while reducing our gross paycheck?
  21. 21. http://www.bankrate.com/brm/calculators/tax/payhttp://www.paycheckcity.com/pages/payrollinfo.asp

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