Chapter 2 Understanding Your Paycheck
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You will see deductions from your
paycheck, such as federal income tax.
When assessing a job off er, you should consider the value of the benefi ts.
Add that to the gross pay to determine the total value of the job. First, add up the
total value of all benefi ts:
total annual employee benefi ts = benefi t one + benefi t two + benefi t three
Then, add the total benefi ts to the gross pay to get the total job value:
total annual value of job = annual gross pay + total annual employee
benefi ts
Example 2-2B
See It
Jazmin has a job as a hostess at a local restaurant. She earns $8.78 per hour and
usually works about 80 hours per month. Jazmin also receives a monthly allowance
of $35 for her work uniform. She is responsible for cleaning her uniform and
ordering new uniforms as necessary. What is the total annual value of Jazmin’s job?
fyi
If the job is hourly, or has
overtime or commission
as a component, you
may have to estimate
the gross pay. You could
also use monthly values
and monthly gross pay to
arrive at a total monthly
value of the job.