MEWC
FMWC
TAC
EEO
TASK
In this Challenge, you will calculate the take-home pay on your paycheck. You will start with your annual salary and then subtract insurance costs and retirement contributions. These costs and contributions are often pre-tax (more on this in a future challenge), meaning that your tax payment is calculated after subtracting those amounts. You will then calculate your FICA (Federal Insurance Contributions Act – for Medicare and Social Security), state income, and federal income tax costs. Whatever is left after paying for insurance, paying yourself (i.e., saving for retirement), and paying the government is yours to take home.
WALKTHROUGH VIDEO PROVIDED BY DAVID BROWN
In this tutorial, David explains how to calculate take-home pay on your paycheck.
You will learn how to:
- calculate FICA (Federal Insurance Contribution Act)
- calculate state income
- calculate federal income tax costs