Salary vs. Hourly Wage

What is a Salary? What is an Hourly Wage?

Is it the same in all states?

Salary is a set amount an employer pays an employee for a job. The hours worked do not matter, you still get

paid the same. This applies to most businesses and not to the Federal Government.

Hourly Wage is an amount paid for each hour an

employee works. How do you find the amount you

make for each day or week or month you work?

Salary

IF YOU MAKE $55 ,000 /YEAR, HOW MUCH WOULD YOU MAKE A MONTH?

NOW HOW MUCH OF IT WOULD BE AFFECTED BY TAXES?

You will be charged 13.38% for federal taxesYou will be charged 6.2% for Social Security

taxesYou will be charged 1.45% for Medicare taxesAnd you have to consider the state

taxes…..let’s just say it is 5% of you gross.

So your take home pay would be $55,000 x 13.38% = $55,000 x 6.2% = $55,000 x 1.45% = $55,000 x 5.0% =

$55,000 – federal taxes – social security – medicare – state taxes =

Divide that number by what number to get monthly pay.

Minimum Wage in Louisiana is $7.25The national average is $7.25 and has been

since 2009.So let’s do the math….

40 hour week x 7.25 = $290.0052 week’s/year x $290.00 = 15,080

What would you make each month?15,080 ÷ 12 = 1256.66

Most likely you would pay very little in taxes….but you would still have to pay Social Security and medicare….could you live on this amount???