2. Income - what is your projected income for the year of this budget? Research what your projected salary is likely to be for the time frame you are budgeting. Be sure to use ENTRY level pay, not median pay for that career. Provide documentation on how you arrived at this number (most likely a screen shot showing this information). If you are using your current income, you do not need to provide documentation. Once you determine the projected annual gross income, you must adjust this number to estimate TAKE HOME pay, which is what you will use for your budget. Your take-home pay depends on MANY different factors, but for the purposes of this assignment, use the following - - Monthly income of $4,000 or less assume 20% withholding - Monthly income of between \$4,000 and $8,000 - assume 23\% withholding - Month income of $8,000 or more assume 26% withholding The withholding would include federal income taxes, Social Security, Medicare and employer-provided health insurance. Note that these numbers are very rough estimates, but will suffice for our purposes. Since we are assuming that health care is provided by your employer, you do not need to include this expense in your budget. EXAMPLE: 1. Annual income $42,000 2. Monthly income: 42,000/12=$3,500 3. Calculate withholding: 3,500.20 (20\% withholding) =$700 4. Calculate take-home pay: $3,500 - 700= $2,800 NOTE: If you are completing the budget based on your current income, you can use your actual take home pay, vs. the estimates above. 2. Income - what is your projected income for the year of this budget? Research what your projected salary is likely to be for the time frame you are budgeting. Be sure to use ENTRY level pay, not median pay for that career. Provide documentation on how you arrived at this number (most likely a screen shot showing this information). If you are using your current income, you do not need to provide documentation. Once you determine the projected annual gross income, you must adjust this number to estimate TAKE HOME pay, which is what you will use for your budget. Your take-home pay depends on MANY different factors, but for the purposes of this assignment, use the following - - Monthly income of $4,000 or less assume 20% withholding - Monthly income of between \$4,000 and $8,000 - assume 23\% withholding - Month income of $8,000 or more assume 26% withholding The withholding would include federal income taxes, Social Security, Medicare and employer-provided health insurance. Note that these numbers are very rough estimates, but will suffice for our purposes. Since we are assuming that health care is provided by your employer, you do not need to include this expense in your budget. EXAMPLE: 1. Annual income $42,000 2. Monthly income: 42,000/12=$3,500 3. Calculate withholding: 3,500.20 (20\% withholding) =$700 4. Calculate take-home pay: $3,500 - 700= $2,800 NOTE: If you are completing the budget based on your current income, you can use your actual take home pay, vs. the estimates above
