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C h e c k o u t A B M P 's l a t e s t n e w s a n d b l o g p o s t s . Av a i l a b l e a t w w w. a b m p . c o m . 23 visit abmp.com EMPLOYEES Employees can calculate a few different categories of hourly net profi t: current, year-to-date, and annual. CURRENT HOURLY NET PROFIT To calculate the hourly net profi t for your most recent pay period, divide the total net amount of your current paycheck (after taxes and all other deductions are taken) by the number of session hours you worked during that pay period. Done. YEAR-TO-DATE HOURLY NET PROFIT Calculate your year-to-date hourly net profi t using fi gures from your current paycheck. Subtract your year-to-date taxes withheld from your year-to-date gross income. This is your year-to-date net income. Divide this fi gure by your year-to-date session hours to get your fi nal year-to-date hourly net profi t. The session hours fi gure will probably not be on your pay stub; you'll need to track that on your own, or get the information from your employer's records. YTD gross income - YTD taxes withheld = YTD net income ÷ YTD session hours = YTD hourly net profi t Net income ÷ Session hours = Current hourly net profi t ANNUAL HOURLY NET PROFIT Use your IRS W-2 form for the previous year to calculate your annual hourly net profi t. First, take the "wages, tips, other compensation" amount in Box 1 and subtract all of the "taxes withheld" amounts from Boxes 2, 4, 6, 17, and 19: federal income tax, Social Security tax, Medicare tax, state income tax, and local income tax. This gives you your net income for the year. Divide this fi gure by your total session hours for the year to get your annual hourly net profi t. Wages, tips, other compensation Federal income tax + Social Security tax + Medicare tax + State income tax + Local income tax = Total taxes withheld Wages, tips, and other compensation – Total taxes = Annual net income ÷ Total session hours = Annual hourly net profi t