20 EARNINGS TAXES & DEDUCTIONS Desc Hrs Amount Desc Current YTD Regular 40 $400.00 Federal Tax $48.25 $386.00 State Tax $16.15 $129.20 Local Tax $8.75 $70.00 Social Sec $24.80 $198.40 GROSS YTD $3,200.00 Medicare $6.00 $48.00 NET YTD $2,368.40 Total $103.95 $831.60 EMPLOYEE Sophia Adams SOC SEC # XXX-XX--6789 CHECK NO. 06501 PAY PERIOD 6/5/17 - 6/11/17 PAY DATE 6/16/17 NET PAY $296.05 Johnson’s Diner Sample pay stub Sophia worked 40 hours a week at Johnson’s Diner during her summer break. She made $10 an hour and worked for eight weeks. Sophia’s weekly gross pay was $400 ($10 x 40 hours). After deductions, her net or “take home” pay was $296.05. Here is Sophia’s pay stub for one week in June. Tax returns must be filed on or before April 15. Taxes can be very confusing, and many need some assistance the first time they file an income tax return. Just be sure to start early. If your employer withheld more money than you owe, the government will send you a refund. If it turns out that you owe the government additional money, you will need to include the money you owe with your tax return. Most young people end up getting a refund. Tax Rates The greater your income, the higher your tax rate. For example, if you earned $15,000 last year, your tax rate is 10%. If you earned $415,000 last year, your tax rate is 35%. So, the more you earn, the larger the percentage you need to pay in federal taxes.