BUDGET NOTES Budget Notes Gross Income the total
BUDGET NOTES
Budget Notes �Gross Income: the total amount of money one earns �Ex. $7. 25 an hour �Multiplied by 40 hrs. per week _______ �Multiplied by 52 weeks per year _______ �Divided by 12 months per year _______ �Equals = Gross Monthly Income ________
Budget Notes �Gross Income: the total amount of money one earns �Ex. $7. 25 an hour �Multiplied by 40 hrs. per week ____$290____ �Multiplied by 52 weeks per year _____$15, 080_____ �Divided by 12 months per year ____$1, 256. 67_____ �Equals = Gross Monthly Income __$1, 256. 67_______
Budget Notes �Pre- tax deduction – Any money that is taken out of your gross pay before you pay taxes. These deductions are benefits paid by your employer. �Income tax – Money taken from your gross monthly income by the government. �Ex. Gross Monthly Income = $1256. 67 per month
Budget Notes �Federal Income Tax (9%) �$1256. 67 *. 09 = _________ �FICA – Social Security and Medicare (7. 65) �$1256. 67 *. 0765 = ________ �State Tax (7%) �$1256. 67 *. 07 = __________
Budget Notes �Federal Income Tax (9%) �$1256. 67 *. 09 = _____$113. 10______ �FICA – Social Security and Medicare (7. 65) �$1256. 67 *. 0765 = ____$96. 14______ �State Tax (7%) �$1256. 67 *. 07 = _____$87. 97_____
Budget Notes �Net income – the total amount of money you make after taxes. From the amount you will pay for rent, food, transportation, etc. �What would your net monthly income be in this example?
Budget Notes �Net Monthly Income �$1256. 67 -$297. 21=$959. 46
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