# Calculate salary home

To calculate the wages of home, add simply all deductions and then subtract the total deductions from gross pay.

Definition of take home pay: also called net pay, wages of home is the money that remains after all deductions were exempted gross pay.

Definition of deductions: all the money from your gross salary

Definition of gross earnings: the sum of money paid to an employee before deductions

Take home pay = gross earnings – deductions

Example # 1:

Steve is a programmer and works 35 hours a week. Steve is paid \$25 / hour. Calculate salary home

Here are the payroll by Steve:

Federal tax: \$130

State fee: \$25

Health insurance: \$80

Health insurance tax: \$52

Disability: \$12

Dues: \$21

First, calculate the total deductions:

Total deductions = tax federal + state tax + insurance + tax for Medicare disability + membership dues

Total deductions = \$130 25 \$ + \$80 + 52 + 12 \$ + \$21

Total deductions = \$320

Second, calculate steve gross income:

Gross pay = number of hours worked × rate

Here is how much you get paid per hour

Thus, gross pay = \$35 × 25 = \$875

Take home pay = gross earnings – deductions

Take home pay =-320 \$ \$875

Take home pay = \$555

Example # 2:

Amy is a registered nurse and works 52 hours per week. Amy is paid \$50 per hour for regular time and \$75 per hour for overtime

Here are the payroll deductions to Amy:

Federal tax: \$150

State tax: \$54

City tax: \$24

Health insurance: \$100

Health insurance tax: \$45

contribution that: \$80

First, calculate the total deductions:

Total deductions = tax federal + state tax + tax + insurance + insurance + contribution tax

Total deductions = \$150 + \$54 + 24 \$ + \$100 + \$45 + \$80

Total deductions = \$453

Second, calculate steve gross income:

Gross pay = number of hours worked × rate

Given that Amy has worked 52 hours, there is overtime pay.

Regular pay = × 40 \$50

Regular pay = \$2000

The overtime pay = × 12 \$75 \$

The overtime pay = \$900

Gross pay = regular salary + overtime compensation

Gross pay = \$2000 + 900 \$

Gross pay = \$2900

Take home pay = gross earnings – deductions

Take home pay = \$ \$2900-453

Take home pay = \$2447