Payment
This is the most common way to get paid when you have a job.
Paycheck
Who has to pay taxes when they get paid?
Every legal employee in our country does
What is a paycheck stub?
–A document included each pay period which outlines paycheck deductions
What is a deduction?
–The amount of money subtracted from the gross pay earned for mandatory systematic taxes, employee sponsored medical benefits, and/or retirement benefits
What is the medical insurance deduction for?
–The amount taken from the employee’s paycheck for medical benefits assuming they are FULL TIME employees
Part time employees usually don't get medical benefits from an employer. That said, benefits from a full time job are usually better than Medicare benefits, so get that full time job!!
This kind of payment goes directly to your bank.
Direct deposit
What are taxes?
Taxes are charges imposed by local, state, and federal governments.
What kind of personal info is on a paycheck?
Employee name, address, social security number
What is Federal Withholding Tax?
–The amount required by law for employers to withhold from earned wages to pay taxes
–The amount of money deducted depends on the amount earned and information provided on the Form W-4
–Largest deduction withheld from an employee’s gross income
What is the retirement plan deduction for?
–The amount an employee contributes each pay period to a retirement plan
–A specified percentage of the contribution is often matched by the employer
–May be a 401K, a state, or local retirement plan
Some day, when you are old, this money can help you.
This form of payment is fairly new and might look like a credit card
Payroll card
Why do we have taxes? What do they do?
When you work at a job to make money, you pay income taxes. ... Tax money helps to ensure the roads you travel on are safe and well-maintained. Taxes fund public libraries and parks. Taxes are also used to fund many types of government programs that help the poor and less fortunate, as well as many schools!
What is a pay period?
–The length of time for which an employee’s wages are calculated; most are weekly, bi-weekly, twice a month, or monthly
What is State Withholding Tax?
–The percentage deducted from an individual’s paycheck to assist in funding government agencies within the state
–The percentage deducted depends on the amount of gross pay earned
What is the Year-To- Date line on a paystub mean?
•Total of all of the deductions which have been withheld from an individual’s paycheck from January 1 to the last day of the pay period indicated on the paycheck stub
Who is in charge of being responsible for a paycheck?
YOU ARE! It's your money. Spend wisely!
What forms do you need to fill out when you get any job?
The W-4 form and the I-9 form
What is gross pay?
–The total amount of money earned during a pay period before tax and insurance deductions
•This is calculated by multiplying the number of hours worked by the hourly rate
•If a person is on salary, it is the total salary amount divided by the specified time period
What is the Social Security deduction for?
–Nation’s retirement program, helps provide retirement income for elderly and pays disability benefits
–Based upon a percentage (6.2%) of gross income, employer matches the contribution made by the employee
- Someday, you'll want to retire...this will help take care of you when you retire and are old
What should you do after receiving a paycheck?
Sign it and deposit it in a bank.
What makes direct deposit so convenient?
Direct deposit payments go directly to your bank, where it will be safe.
What do the forms do from the rectangle above?
The W-4 determines the percentage of gross pay which will be withheld for taxes. It also determines allowances.
The I-9 is used to verify as to whether or not you can actually and legally work in the USA.
What is net pay?
–The amount of money left after all deductions have been withheld from the gross pay earned in the pay period
What is the Medicare deduction for?
–Nation’s health care program for the elderly and disabled, provides hospital and medical insurance to those who qualify
–Based upon a percentage (1.45%) of gross income
Many of you already receive Medicare because you have a disability
List ways you can deposit a check
-Signing the check bring it to a bank
- Signing the check and using a bank app on your phone to photograph the check