- Determine how payroll tax amounts are figured
- Find your annual salary that you would get paid for the career you researched, which is in your My Career document in your Lesson 2 folder. Using that annual salary amount, calculate the following taxes that would be taken out of your check.
- Federal Income Tax is a tax levied by the United States Internal Revenue Service (IRS) on the annual earnings of individuals, corporations, trusts and other legal entities. The tax amount comes from this table when using your annual income, Gross Pay, to determine what the tax is as a single individual.
- Social Security Tax is the federal tax levied on both employers and employees to pay for the retirement and disability benefits received by millions of Americans each year. To calculate it, take your annual amount, Gross Pay, and multiply it by 6.2%. (ROUND your answer to the nearest dollar)
- Medicare Tax is the federal tax levied on both employers and employees to provide subsidized healthcare and hospital insurance benefits to retirees and the disabled. To calculate it, take your annual amount, Gross Pay, and multiply it by 1.45%. (ROUND your answer to the nearest dollar)
- Create a new document titled Employee Payroll Taxes-(your initials). In that document, create a table exactly like this one. Then fill in the table with you numbers similar to what is shown in the table.
- After completing the assigned tasks in Lesson 4 above, share your Lesson 4 folder with your teacher. You need to make sure you completed the Tax Calculations task in Lesson 4 and submitted the form. Your Lesson 4 folder should include the following files:
- Payroll Taxes
- Employee Payroll Taxes
Lesson 4 Quiz-EU
- Complete the Lesson 4 Quiz for the Employment Unit.