Math Graded Assignment |Unit Project| Pay and Taxes
Graded Assignment
Unit Project: Pay and Taxes
Review the requirements for completing the Graded Assignment.
Goals
Different jobs pay different amounts, but all employees have one thing in common. They pay taxes.
During this unit, you will explore pay amounts and federal income tax.
First you'll find the mean pay rate for a job you're interested in. Then you'll use that figure to complete a pay stub,
a W-2, and a 1040. Finally, you'll compare differences in employment levels and pay rates for your chosen job
throughout the United States.
Schedule of Completion
Suggested Time to Complete and What to Turn In
Project Research: 1 day. No submittals.
Project Writing: 3 days. Submit Lesson Checkpoint: Paycheck Deductions.
Project Reflection: 1 day. Submit your completed project to your teacher.
Project Instructions
Before beginning, review the sample presentation and the sample 1040 so that you understand what you'll be
creating.
Project Files
You will use the following documents and tools for this project:
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Project Overview: PRM_B_02_project_overview.doc
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Project Template: PRM_B_02_project_template.ppt
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Sample 1040: PRM_B_02_sample_1040.xlsx
Spreadsheet Template: PRM_B_02_spreadsheet_template.xls
• Sample Presentation: PRM_B_02_sample_presentation.ppt
•
Template
Download the project template and rename the file as JobPresentation_YourName. This file will become your
presentation.
Download the spreadsheet template and rename the file as 1040Spreadsheet_YourName. You will use this file
to help you create your presentation. You will also submit it along with your presentation.
Project Research
1. Go to the website for the U.S. Bureau of Labor Statistics: www.bls.gov. Under the Subject Areas tab, look
under Pay & Benefits, and choose Wages by Area & Occupation. Then select the link for the National Wage
Data for over 800 occupations.
2. You will first see a list of major occupational groups. Below this list is the full table of jobs. From this list, select
a job that you are interested in. Do not pick the occupation used in the project sample. Notice that you can
select a link from the major occupational group's list to automatically move to a certain part of the table.
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Page 1 of 4 Math Graded Assignment | Unit Project| Pay and Taxes
(a) In the list, you will see rows for general categories, such as Secretaries and Administrative
Assistants. These categories do not have active links (not underlined). They are followed by detailed
occupations under that category, such as Legal Secretaries and Medical Secretaries. These have
active links (underlined). Choose a more detailed (underlined) occupation.
Tip: If you cannot find a particular occupation you are looking for, try different wording. For example,
look for musician instead of rock star.
(b) Select the link for your chosen occupation. You will see a brief description of the job followed by
mean wages.
3. Open your presentation. On slide 1, type your name. On slide 2, record the occupation title, occupation code
(shown in the form xx-xxxx), mean hourly wage, and annual mean wage of your chosen career. If one of
these amounts is missing, calculate it. Assume working 40 h/week for 52 weeks. Then summarize the duties
of an employee with this job. Do not copy the description from the website word for word.
Project Writing
1. Complete Lesson Checkpoint: Paycheck Deductions, an online, ungraded assessment. You'll practice
calculating Social Security and Medicare taxes—a skill essential to completing your project. Reach out to your
teacher with any questions you have after taking this assessment.
2. Open your presentation. On slide 3, complete the pay stub.
(a) Choose a pay period. Choose weekly, biweekly, semimonthly, or monthly. Then choose if the job is
paid by hourly wages or by a given salary. Complete the first sentence on the slide.
(b) Use the mean wages on slide 1 to calculate the gross pay for your chosen pay period. On the slide,
briefly show or explain how you determined this amount. For example, multiply the hourly wage by
40, or divide the annual wage by the appropriate number of pay periods. (Note: Assume 40 hours if
working an hourly wage.) Fill in the gross pay amount on the pay stub under Gross Pay.
(c) Use the gross pay amounts and the table below to determine the amount of federal income tax
withheld. (Note: This table estimates a typical withholding amount for a single employee with no
dependents. Actual federal withholding amounts in the real world will differ.)
Annual Gross Income
Over $10,000 and up to $20,000
Over $20,000 and up to $40,000
Federal Income Tax Withheld
6% of gross pay
10% of gross pay
Over $40,000 and up to $60,000
12% of gross pay
Over $60,000 and up to $80,000
16% of gross pay
Over $80,000 and up to $100,000
18% of gross pay
Over $100,000 and up to $120,000
Over $120,000 and up to $140,000
20% of gross pay
21% of gross pay
Over $140,000 and up to $160,000
22% of gross pay
Over $160,000 and up to $200,000
23% of gross pay
Over $200,000
25% of gross pay
Fill in the amount withheld for federal tax on the pay stub next to Federal Tax.
(d) Use the gross pay amount to calculate the Social Security and Medicare taxes. Fill in these amounts
on the pay stub.
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Copying or distributing without K12's written consent is prohibited.
Page 2 of 4 Math Graded Assignment | Unit Project| Pay and Taxes
(e) Use the gross pay amount to determine the state tax. Some states have no income tax. The tax rates
for states that do have an income tax vary. For this project, assume a 3% state income tax.
(f) Find the total of the taxes. Fill in the total tax amount on the pay stub under Tax Deductions.
(g) Use the list below to choose voluntary deductions. (Note: This table gives sample amounts only.
Actual deductions in the real world will differ.) Choose at least two of these deductions.
Retirement: Calculate 5% of gross pay.
•
•
•
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Health Insurance: Use an annual deduction of $1650 to calculate the deduction for the pay
period.
Life Insurance: Use an annual deduction of $400 to calculate the deduction for the pay period.
Disability Insurance: Use an annual deduction of $150 to calculate the deduction for the pay
period.
Fill in the calculated amounts on the pay stub. Fill in $0 for deductions not chosen.
(h) Find the total of the voluntary deductions. Fill in the total amount of voluntary deductions on the pay
stub under Voluntary Deductions.
(i) Determine the net pay by subtracting the tax deductions and the voluntary deductions from the gross
pay. Fill in the net pay on the pay stub under Net Pay.
3. Open your presentation. On slide 4, complete the W-2.
(a) Box 1: Enter the annual mean wage by multiplying the gross pay on your pay stub by the appropriate
number of pay periods.
(b) Box 2: Enter the total amount of federal income tax withheld for a full year by multiplying the amount
of federal tax withheld on your pay stub by the appropriate number of pay periods.
(c) Box 3: Social Security taxes are taken only up to a certain amount of pay, and this amount changes
every year. For the purpose of this project, use $120,000 as the limit.
•
If the amount in Box 1 is less than or equal to $120,000, then enter the amount in Box 1 into Box
3.
•
If the amount in Box 1 is greater than $120,000, then enter $120,000 into Box 3.
(d) Box 4: Enter the total amount of Social Security tax withheld, which is 6.2% of the amount in Box 3.
(e) Box 5: Enter the annual mean wage, from slide 1. (Notes: Unlike Social Security, there is no limit on
how much Medicare tax is taken out. Also, in the real world, this amount can be larger than the
amount in Box 1 if your employer contributed money to your retirement plan.)
(f) Box 6: Enter the total amount of Medicare tax withheld, which is 1.45% of the amount in Box 5.
(g) Box 13: If you chose retirement as a voluntary deduction on your pay stub, then type an X in the
appropriate spot.
(h) Box 16: Enter the amount in Box 1.
(i) Box 17: We are assuming a 3% state income tax, so enter 3% of the amount in Box 16 into Box 17.
Note: For the purpose of this project, ignore the shaded boxes. In the real world, you may see some of these
boxes filled in.
4. Open your 1040 spreadsheet, which you saved with your name. In the 1040 tab, part of a blank 1040 is
shown on the left. Instructions for filling out the 1040 are shown on the right. Follow all those instructions, in
order. Tax Tables and Tax Formulas are given in the other two tabs of the spreadsheet. Round all values to
the nearest whole dollar. You do not need to show dollar signs on this form. Save your work when you are
finished. You will submit this document along with your presentation.
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Copying or distributing without K12's written consent is prohibited.
Page 3 of 4 Math Graded Assignment | Unit Project| Pay and Taxes
5. Open your presentation. On slide 5, type in the following information from your 1040, and then write the final
statement about whether an employee with this 1040 would receive a refund or owe money, and give the
amount that the person would receive or pay.
• Total income (from Line 22)
Adjusted gross income (from Line 37)
Taxable income (from Line 43)
•
•
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Tax (from Line 44)
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Total payments (from Line 72)
The amount overpaid (from Line 73) or underpaid (from Line 76)
Project Reflection
1. Go back to the website for the U.S. Bureau of Labor Statistics and select the link for the occupation you
chose. Scrolling down, you will find maps and tables with employment levels and mean pay rates for states
and localities. Look through this information.
•
Each map has a key that shows what the different colors on that map represent.
•
The location quotient indicates the job concentration within a given area. The greater the location
quotient, the greater the concentration of jobs in that area.
2. Open your presentation. On slide 6, write a discussion that addresses each of the following for your chosen
job:
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Which areas of the United States have the highest levels of employment? Which areas have the lowest
levels of employment? Why do you think this might be?
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Which areas of the United States have the greatest mean pay? Which areas have least mean pay? Do
you find any of this surprising? Why or why not?
•
Use your research to answer: If someone who wanted this job could move anywhere in the United States,
where would you suggest the person move to and why?
Submission
Confirm that your project contains all your work:
General job information
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A completed pay stub
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A completed W-2
● A completed 1040
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Your reflection on regional differences
Submit your project (both your presentation and your 1040) to your teacher.
© 2015 K12 Inc. All rights reserved.
Copying or distributing without K12's written consent is prohibited.
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