INSTRUCTIONS Need to do in excel Career paths - Purchasing Managers, Buyers, and Purchasing Agents in texas Project 1 Instructions For this project, you will set up a budget that

will allow you to live the type of life you would like based on the career path you have chosen. Using the U. S. Government's Occupational Outlook Handbook, you will find a career the interested in related to your major. Use the website to find the median yearly income for your career. After you have found the median income for your career, you will build a worksheet to house your budget. Your workbook should have the following worksheets: Tax Information Sheet Budget Sheet Your worksheet should be well organized and easy to read. Part 1 - Tax Information Sheet Based on your income, you will need to calculate your net income after taxes. The following chart will help you figure out what your income will be after taxes. You should look at the dollar amounts as starting points for the bracket. Anything from that number up to the next bracket will fall under that percentage. For instance, someone making $54,500 would fall under the 22% take bracket because that number falls below the starting point of the next bracket. Federal Tax Brackets and Rates, 2021 Rate For Unmarried Individuals, Taxable Income Over For Married Individuals Filing Joint Returns, Taxable Income Over For Heads of Households, Taxable Income Over 10% Up to $9,950 Up to $19,900 Up to $14,200 12% $9,951 $19,901 $14,201 to $54,200 22% $40,526 $81,051 $54,201 to $86,350 24% $86,376 $172,751 $86,351 to $164.900 32% $164,926 $329,851 $164,901 to $209,400 35% $209,426 $418,851 $209,401 to $526,600 37% $523,601 or more $628,301 or more $523,601 or more After you have figured out what your tax percentage is you will need to calculate the Federal and State Tax withholdings to deduct from your Gross Income. Please keep in mind this is an estimate of what you would pay. In reality, taxes are computed a little differently but in the interest of simplifying this process, we are going to use the percentage you found above. The Federal withholdings should be calculated based on the tax brackets displayed above. To find the amount of state taxes that you will need to pay, please go to State Tax Brackets and look up the state you plan on residing in. These numbers should be entered in a column as a percentage. You will use this column and the cell you placed your median income in to create a formula to calculate the taxes. The guidelines for calculating Social Security Tax and Medicare Tax are below. There is a cap on the maximum amount of social security you have to pay. Medicare is a little more complex because you pay an additional percentage if you reach the $200,000 mark. Anything over that point, you pay an additional percentage on the amount over. Guidelines for figuring out your Social Security and Medicare taxes are as follows: For 2018, an employee will pay: a. 6.2% Social Security tax on the first $137,700 of wages (maximum tax is $7,960.80 [6.2% of $128,400]), plus b. 1.45% Medicare tax on the first $200,000 of wages ($250,000 for joint returns; $125,000 for married taxpayers filing a separate return), plus c. 0.9% additional Medicare tax) on all wages in excess of $200,000 ($250,000 for joint returns; $125,000 for married taxpayers filing a separate return) On a salary of $142,800 (or more), an employee and his employer each will pay $8, 853.60 in Social Security tax in 2021. Part 2 - Budget Sheet Once you have deducted all taxes, you will have the figure you need to begin planning your budget. Your budget should be broken down by month. You will just use one sample month. The budget should include Housing, Utilities, Food, Transportation, Clothing/Personal items, Medical Care, Entertainment, Credit Card Expenses, Savings, and Miscellaneous Expenses. You must use percentages to calculate your budget. So you will be taking the net income you found after taxes from your Tax sheet and multiplying that number by the percentages you assign to the different categories in your budget. The following categories must be included in your budget: Housing (Housing expenses will be the largest portion of your budget. Experts recommend spending no more than 25 to 30 percent of your budget on housing expenses.) Transportation (Most experts say your transportation costs should be 10 to 15 percent of your monthly budget.) Food (Food costs should be about 10-15% of your net monthly income.) Personal/Clothing (In addition to clothing, personal items include things like toiletries, laundry, haircuts, etc. Personal/clothing items will run about 2-10% of your monthly income.) Utilities (Utilities include things like gas, electricity, telephone, cell phone, cable or satellite television, water, etc. Gas and electricity may already be included in your rent if you choose to rent an apartment or house but you still need to research this information. Experts say you should budget 5 to 10 percent of your net income for utilities each month.) Entertainment (Entertainment must be included in your budget because realistically, you are not going to sit at home, you will go out and spend money on yourself and possibly your friends.) Miscellaneous (The miscellaneous category will include out-of-pocket expenses, convenience items, incidental home expenses, vacations, etc.) Health Insurance (Health insurance premiums will vary depending on your circumstances. For this assignment, you will assume that premiums for individual coverage averaged $321 per month while premiums for family plans averaged $833 per month and include that in your budget.)