Calculating Pay
Describe Gross pay
The amount of money earned before taxes are taken out
Ex. If I worked 4 hours for $10/ hr, my gross pay would be $40.
- The amount of taxable in come
- The amount of total income and taxes withheld for a given year
After how many hours of working per week do you start counting overtime?
After you work 40 hours in a week, anything after that is overtime
Name 2 documents from List A of the I-9 form
- Passport
-Resident Card/Green card
-Employment Authorization Document Card
-Foreign passport with Form I-94 or Form I-94A with Arrival-Departure Record, and containing an endorsement to work
Describe Wages
A fixed regular payment, typically paid on a daily or weekly basis, made by an employer to an employee
Describe Net pay
Take-home pay. The amount of money you actually get in your paycheck after taxes are taken from your gross pay
Who is the 1040 tax filing designed for?
People who are Single or Married + filing jointly
AND have no dependents or itemized deductions
What is the average hourly pay for overtime hours?
1.5
OR
150% of regular hourly pay
What are the first 2 steps in making financial decisions?
1. Establish Goals
2. Evaluate Current Financial Position
Describe Commissions
A sum, or percentage, of money paid to an employee upon completion of a task, usually selling a certain amount of goods or services
What is the equation to find Net Pay?
Gross Pay - Tax Deductions = Net Pay
What time frame does a W-2 cover?
Jan. 01 - Dec. 31
First day of the year, to the last day of the year.
When do you fill out a W-4 AND What is the purpose?
When: At the start of a new job or when you filing status has changed
Purpose: So your employer (boss) knows how much taxes to withhold from your paycheck
What are the last 2 steps in making financial decisions?
3. Evaluate or come up with ways to achieve your goals
4. Pick your best plan!
DOUBLE JEOPARDY!
Describe Inheritance AND Benefits
Inheritance: The assets that an individual leaves for their loved ones after they pass away
Benefits: Types of non-wage compensation that employers provide their workers on top of their salaries or wages. (Health care, discounts, bonuses, etc.)
Regular hours x Regular Pay
Regular hours times Regular pay
What are the 2 mandatory payroll deductions for FICA?
Social Security + Medicare
Why did the government create itemized deductions?
DOUBLE JEOPARDY!
List 3 documents from List B of the I-9 Form
- Social Security Card
- Driver's License
- School ID
-Voter Registration Card
-Native American Tribal Document
- Military Card
Describe Investment Income:
Money you get from interest, rents, dividends, capital gains, and other income derived from an asset.
What is the equation to find gross pay? Part 2 (if necessary)
Overtime hours x Overtime pay
Overtime hours times Overtime pay
( + the Part 1 equation)
What are the percentages taken out of gross income for each of the FICA payroll deductions?
Social Security: 6.2%
Medicare: 1.45%
DOUBLE JEOPARDY!
What is an itemized Deduction? AND Name 4 examples
Types of expenses made that could lower taxable income
- Charitable donations
- Mortgage interest
- Personal Property taxes
-State taxes
-Federal taxes
- Disaster losses
-Real Estate taxes
Name 3 possible filing statuses
- Single
- Married filing separately
- Married filing Jointly
- Head of Household
- Qualifying widow(er) with dependent child
Describe a gift
Anything that has monetary value which you obtain for less than 'market value