10. Examine your net pay

Your net pay is the amount of your paycheck after all deductions are subtracted. You need to know this to manage your spending. When you get your first check, you may be shocked by how big a bite the deductions have taken!

Calculating net pay:

• Throughout this lesson, examples are based on a yearly salary of $32,000, or $615.38 per week. With all the deductions, how much will your paycheck be each week?
• Here is the calculation:

Gross pay	$615.38
Federal income tax	–57.69
OASDI	–25.85
Medicare	–8.92
State income tax	–18.46
Local income tax	– 9.23
Retirement plan	–15.38
Health insurance	–45.00
State disability insurance	– 6.15
Net Pay	$428.70