January 22nd
Warm Up: What do you think federal taxes are used for? What other taxes are paid through your paycheck? Policy Basics: Where Do Our Federal Tax Dollars Go? Payroll and tax activity Fill out your W-4 to determine the number of exemptions you will claim on your earnings. Some helpful January 23rd Warm up: You have won the lottery and have enough money to cover your expenses for the rest of your life. Will you continue to work in the job of your choice? Why or Why not? Complete your Pay Stub with all of the information requested. Personal information, federal, medicare, social security and state taxes. You will need your annual salary for this activity and to know that you are paid bi-monthly or two times per month. Annual salary / # of pay periods Federal Tax Calculation Example: Determine tax, take-home income, and effective tax rate for $200,000 # Range Money in Bracket Tax rate Tax Paid 1 $0-$9,525 $9,525 10% $952.50 2 $9,526-$38,700 $29,174 12% $3,500.88 3 $38,701-$82,500 $43,799 22% $9,653.78 4 $82,501-$157,500 $74,999 24% $17,999.76 5 $157,501-$200,000 $42,499 32% $13,599.68 Total Tax Paid: $45,688.60 Cumulative Tax rate: 22.8% $45,686.60/$200,000
Example: Monthly gross pay: $4,707 Subtract any W-4 allowances (2): ($667) Adjusted wage: $4,040 From % withholding table(p22) ($192) $3,848 This is your Colorado taxable income Multiply by 4.63% x .0463 $178.16 Actual amount of withholding per month January 24th-No class January 25th Warm Up: What is a freedom or purchase-like a house- that you are looking forward to in your adult life? Why? How old will you be when it happens?
Example: Monthly gross pay: $4,707 Subtract any W-4 allowances (2): ($667) Adjusted wage: $4,040 From % withholding table(p22) ($192) $3,848 This is your Colorado taxable income Multiply by 4.63% x .0463 $178.16 Actual amount of withholding per month January 26th Warm Up: What are five things that you think should be included in your budget? What are two things that you would like to have in your budget? Netflix? Eating out? Budget Activity Use this budget. Use your pay stub to determine your monthly take home pay. Your net (take home pay)after taxes x 2 = monthly take home pay.
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Check out the daily work and warm ups if you miss class and please make up the work! I want you all to succeed. I will accept late work for two weeks after it is due. Check in with me if something comes up!
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