- Introduce Paychecks: calculate gross pay based on 40 hour week,
minimum wage, subtract deductions - Approximately based on minimun wage
-FICA (.062 or 6%), Medicare (.0145 or 1 3/4%), Federal (12%), find
the net pay. Identify these factors on mock paychecks. Give students
examples using different pay rates. The goal is to be able to do the
basic addition, subtraction, and multiplication on calculating wages
and to be aware of the different deductions, know how to read a paycheck
and check for accuracy. Classroom teachers can extend this lesson into
fractions and decimal calculations involving the deductions.
- Pass out sample pay checks that have parts missing and have
students multiply the rate times the number of hours worked, add up
the deductions, subtract them from the gross pay to get the net pay.
Next fill in missing parts of the check (practice writing number words).
The goal is identifying elements of the pay check stub and proper check
- Introduce W-2 form "Wage and Tax Statement" and fill out
Income Tax Return 1040EZ . As a memory aid here W-2
has two basic words Wage and Tax and that is what it is all about.
How much wage (pay) and tax did they pay in the past year. Identify
the parts of the W-2 form, the information that is given and use this
information to fill out the 1040EZ. I downloaded and printed the forms
off of the IRS web site. These copies were much clearer and easier to
read than the forms you get in the mail or at the library. The information
on the W-2 is based on a minimum wage job, 40 hour weeks, 52 weeks a
year and basic, FICA, Medicare and Federal taxes withheld. Upper level
students can be given more complex forms with taxable income, unemployment
compensation etc. Stress to the students that they can get help doing
this form from family members, friends, employer, IRS, etc. These forms
are put in their notebooks for reference.
- Outline of information to teach and forms to fill out dealing with
the Federal Income Tax Process
- 1. When you are hired to work you must fill out a W-4 form (Employee's
Withholding Allowance Certificate)
- a. You must claim __# of dependents.
- b. Your employer now knows how much money to withhold
from you paycheck and send to the federal government.
- 2. Paycheck- wages received from employer each
pay period (weekly, bi-weekly, or monthly)
- a. Deductions/withholdings are taken from
you pay check each pay period for:
- 1. Federal Income Tax
- 2. FICA (Social Security)
- 3. Others... health insurance
- 3. W-2 statement (Wage and Tax Statement)
- a. You receive the W-2 form in January from
- b. The W-2 form states your year in wages (gross
- c. It states your year in withholding (ex. federal
income tax, FICA..._
- d. You use this information to fill out your Income
- 4. Income Tax Return (1040EZ, 1040, 1040A)
- a. It can be obtained through the mail, at the
post office, library, the IRS (Internal Revenue Service), http://www.irs.gov
- b. You fill it out using the information
from the W-2 ( and sometimes other sources)
- c. You sign it.
- d. You file it, (filled out, signed, and
in the mail) with the W-2, and a check if necessary on or before
- Post Test The following questions can be set up as multiple
choice, fill-ins or written answer format.
- 1. When do you fill out a W-4 "Employee Withholding Allowance Certificate"?
- 2. When should you expect to get your W-2 form "Wage and Tax Statement'?
- 3. What information is given to you on the W-2 form?
- 4. What do you do with the W-2 form that your employer sends you?
- 5. If you didn't get a 1040 Income Tax form in the mail where could
you go to get one?
- 6. If you need help filling out the Income Tax Return, who could
you ask for help?
- 7. What is the deadline for filing (filling out, signing, and mailing)
your Income Tax Return?
- 8. Name at least 3 services or programs that are supported through
out tax money.
other life skills math resources
Opening of a Checking Account
Doing Your Taxes from Metlife