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Payroll Clerk

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AVG. SALARY

$45,010

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EDUCATION

High school (GED) +

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JOB OUTLOOK

Decreasing

Real-Life Activities

Real-Life Math -- Solution

You are a payroll officer for an automotive parts manufacturer. You are currently working out the pay for Ron, a newly hired engineer. This is what you calculate:

1. How much money does Ron have left at the end of the year after he has paid his taxes?

Ron's gross income: $34,000 per year
Taxes: 20 percent of his gross income
Net income = $34,000 - ($34,000 x 0.20)
Net income = $34,000 - $6,800
Net income = $27,200

After taxes, Ron has $27,200.

2. If Ron is paid once a month, what amount do you write his paycheck for (after the taxes have been deducted)?

If he is paid once a month, he receives 12 paychecks.
$27,200 / 12 = $2,266.67

Ron will take home $2,266.67 each month.


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OCAP believes that financial literacy and understanding the financial aid process are critical aspects of college planning and student success. OCAP staff who work with students, parents, educators and community partners in the areas of personal finance education, state and federal financial aid, and student loan management do not provide financial, investment, legal, and/or tax advice. This website and all information provided is for general educational purposes only, and is not intended to be construed as financial, investment, legal, and/or tax advice.