Download PaycheckCity.com Practice Scenarios - MrsMilne-WHS

Introduction to Statistics & Personal Finance II
Milne/Roberts
Class Activity Course Day: ___
2011 – 2012
Name: ________________________________
Date: _________________
PaycheckCity.com/calculator
web-based paycheck calculators
There are four sections that require you to review and sometimes enter information in
order to calculate the paycheck online. Here is an overview of what you will see when
you visit the PaycheckCity website:
Section 1: Select calculation date and state.
• Confirm that today’s date appears automatically.
• You must select the appropriate state where the employee earns their salary.
Change the state according to where the employee works.
Section 2: General Information
• You must enter the Gross Pay for the employee. This is easiest when calculated
annually. You do have the option to enter the gross pay “per pay period”. You can
use this option if you have this information, but most often you will be using the
annual gross pay number.
• Leave the Gross Salary YTD (year to date) as 0.
• You will need to determine how frequently the employee is paid (pay frequency).
• For the purposes of this project we will always use the federal filing status:
Single.
• Leave the remaining fields as they are
o # of Federal Allowances: 0
o Additional Federal Withholding: 0
o Round Federal Withholding: No
o Do not check any exemptions.
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Introduction to Statistics & Personal Finance II
Milne/Roberts
•
Class Activity Course Day: ___
2011 – 2012
Review the options listed below for “pay frequency” and write the number of
paychecks that would be received within a calendar year if paid,
Section 3: State and Local Information
• This section will change depending on the state you selected in section 1. Quickly
review the information, but do not make any changes.
Section 4: Voluntary Deduction Section
• This section is very important. Employees often have different types of
deductions (i.e. saving for retirement in the form of a 401(k), contributing to
health insurance, etc…).
• A paycheck deduction is an amount withheld by an employer from employee’s
earnings. Deductions are either voluntary or involuntary.
• A deduction is either a percentage of the gross pay or a fixed dollar amount. You
will indicate this in the drop down menu shown below.
• Do not check any exemptions.
•
Once you have entered all of the required information you are now ready to click
the calculate button.
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Introduction to Statistics & Personal Finance II
Milne/Roberts
Class Activity Course Day: ___
2011 – 2012
PaycheckCity.com Practice Scenarios
Use the website to calculate the paycheck dollar amounts for the following situations:
1. Employee A earns an annual gross salary of $42,000. This employee works in the
state of Ohio. The employer distributes paychecks on a weekly basis. The employee
contributes 1% of his salary to a retirement plan (401(k)).
2. Employee B earns an annual gross salary of $110,000. This employee works in the
state of California. The employer distributes paychecks on a bi-weekly basis. The
employee pays a fixed amount of $80 per pay period.
3. Create your own scenario for Employee C.
Gross Annual Salary: _____________
State of Employment: ___________
Pay frequency: ___________________
Voluntary Deduction Type & Dollar Amount: ______________
4. What is the difference between the pay frequencies bi-weekly and semi-monthly?
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