|
|
Income and Gross vs. Net Pay
|
Scenario #1 - Highway Department
Suppose you have a job with the highway department that pays $32/hr. + They offer a 10% increase (shift differential) if you work the night shift. + They also offer time and a half if you work Saturday or Sunday. |
|
Part 1: How much will your gross pay be if you work 40 hours in a week, but you don't work any nights and you only work Monday - Friday?
Part 2: How much will your gross pay be if you work 40 hours in a week, but all of those hours are during night shifts?
Part 3: How much will your gross pay be if you work 48 hours in a week, with the first 40 hours being all night shift work and the last 8 hours being on a Saturday?
Part 4: FOR EACH SCENARIO, how much will your net pay be if Social Security is 6.2%, Colorado state tax is 4.3%, and Federal Income tax is 22%?
Part 2: How much will your gross pay be if you work 40 hours in a week, but all of those hours are during night shifts?
Part 3: How much will your gross pay be if you work 48 hours in a week, with the first 40 hours being all night shift work and the last 8 hours being on a Saturday?
Part 4: FOR EACH SCENARIO, how much will your net pay be if Social Security is 6.2%, Colorado state tax is 4.3%, and Federal Income tax is 22%?
|
Scenario #2 - Aircraft Mechanic
Suppose you have a job as an aircraft mechanic that pays $41/hr. You are given an opportunity to become a specialist in repairing the radar systems, but you must complete a training program that will cost you $2,000 out of your own pocket. If you complete the training program, your pay will increase to $48/hr. However, you also must join a union that will cost you $15/wk in union dues. |
|
Part 1: Assuming you work a 40 hour week, how much more would you earn each week if you became a radar specialist?
Part 2: if you did become a radar specialist, how long would you have to work to make up the $2,000 cost of the training class?
Part 3: If you did not take the training class and just stayed at your $41/hr job, what would your net pay be for 40 hours if Social Security is 6.2%, Colorado state tax is 4.3%, and Federal Income tax is 25%?
Part 4: if you did become a radar specialist, what would your net pay be for 40 hours if Social Security is 6.2%, Colorado state tax is 4.3%, and Federal Income tax is 22%?
Part 2: if you did become a radar specialist, how long would you have to work to make up the $2,000 cost of the training class?
Part 3: If you did not take the training class and just stayed at your $41/hr job, what would your net pay be for 40 hours if Social Security is 6.2%, Colorado state tax is 4.3%, and Federal Income tax is 25%?
Part 4: if you did become a radar specialist, what would your net pay be for 40 hours if Social Security is 6.2%, Colorado state tax is 4.3%, and Federal Income tax is 22%?
|
Scenario #3 - Real Estate Agent
Suppose you are offered a job as a real estate agent. Your commission when you list a house for a seller (Listing Agent) is 3%. Your commission when you help someone buy a house(Buyers Agent) is also 3%. If you get lucky and happen to sell a house that you have listed, you get "both ends" of the sale and get 6% commission. If you are the Listing Agent for the house, it costs $1,500 to have pictures taken and print advertisements. |
|
Part 1: What would your gross income be if you were the Listing Agent for a $277,000 house?
Part 2: What would your net income be if you were the Listing Agent for the $277,000 house if Social Security is 6.2%, Colorado state tax is 4.3%, and Federal Income tax is 25%?
Part 3: What would your gross income be if you were both the Listing Agent and the Buyers Agent for a $324,000 house?
Part 4: What would your net income be if you were both the Listing Agent and the Buyers Agent for a $324,000 house if Social Security is 6.2%, Colorado state tax is 4.3%, and Federal Income tax is 22%?
Part 2: What would your net income be if you were the Listing Agent for the $277,000 house if Social Security is 6.2%, Colorado state tax is 4.3%, and Federal Income tax is 25%?
Part 3: What would your gross income be if you were both the Listing Agent and the Buyers Agent for a $324,000 house?
Part 4: What would your net income be if you were both the Listing Agent and the Buyers Agent for a $324,000 house if Social Security is 6.2%, Colorado state tax is 4.3%, and Federal Income tax is 22%?
|
Scenario #4 - Energy Worker
Suppose you have a job working in the energy industry drilling for oil and gas. Your job is located in southern Colorado and you can rent a room from a family friend for $200/mo. You are just starting out and earn $23/hr. Then, suppose you get offered a job in Wyoming doing the same thing for a small increase, up to $25/hr, but Wyoming has no state income tax - so you don't have to pay that at all. However, instead of renting a room from a family friend for $200/mo - you have to split an apartment that will cost you $350/mo. |
|
Part 1: What would your net income be for a month if you worked a 40 hour week for 4 weeks and Social Security is 6.2%, Colorado state tax is 4.3%, and Federal Income tax is 22%? Don't forget to subtract the $200/mo for the room you rent.
Part 2: What would your net income be for a month if you took the new job in Wyoming? Suppose you worked a 40 hour week for 4 weeks and Social Security is 6.2% and Federal Income tax is 22% (no state income tax in Wyoming). Don't forget to subtract the $350/mo for your apartment.
Part 3: What should you do? Stay at your current job in Colorado, or move to Wyoming? What would be the difference in income over an entire year?
Part 2: What would your net income be for a month if you took the new job in Wyoming? Suppose you worked a 40 hour week for 4 weeks and Social Security is 6.2% and Federal Income tax is 22% (no state income tax in Wyoming). Don't forget to subtract the $350/mo for your apartment.
Part 3: What should you do? Stay at your current job in Colorado, or move to Wyoming? What would be the difference in income over an entire year?
|
Scenario #5 - Railroad Engineer vs. Truck Driver
You are offered two jobs at the same time. One is as a railroad worker at a starting salary of $42,000/year. You must join a union and dues cost you $75/mo. If you do well, you can become a train engineer within 3 years and earn $60,000/year. The other is as an over-the-road truck driver. This job pays a starting salary of $0.28/mile. The pay increases to $0.40/mile after 3 years. |
|
|
Part 1: If you take the truck driver job, how many miles would you have to drive in your first year to match the $42,000 railroad job?
Part 2: Looking 3 years down the road, how many miles would you have to drive earning $0.40/mile to match the $60,000 railroad job?
Part 3: What would your net pay be per month for the first year railroad job if Social Security is 6.2%, Colorado state tax is 4.3%, and Federal Income tax is 22%, and your union dues are $75/mo?
Part 4: What would your net pay be for your first month as a truck driver if you drove 2,500 miles at $0.28/mile and if Social Security is 6.2%, Colorado state tax is 4.3%, and Federal Income tax is 22%,
Part 2: Looking 3 years down the road, how many miles would you have to drive earning $0.40/mile to match the $60,000 railroad job?
Part 3: What would your net pay be per month for the first year railroad job if Social Security is 6.2%, Colorado state tax is 4.3%, and Federal Income tax is 22%, and your union dues are $75/mo?
Part 4: What would your net pay be for your first month as a truck driver if you drove 2,500 miles at $0.28/mile and if Social Security is 6.2%, Colorado state tax is 4.3%, and Federal Income tax is 22%,
