2.3.9.G1 © Take Charge Today –August2013 – Getting Paid– Slide 1 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer

2.3.9.G1

© Take Charge Today –August2013 – Getting Paid– Slide 1Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona

Daily Information 3/10/14

Objectives:

1.Identify items that are listed on a paycheck stub.2.Differentiate between gross and net income.

Warm Up:

•How much money does a person need?

•Record all your expenditures from the weekend in your budget.

Agenda:

1.Warm Up2.Student P.P.3.Word Cloud4.Getting Paid P.P.5.Student notes6.Getting Paid Math7.Exit Ticket

3/10/2014

Getting PaidChapter 2

•Lesson 2

2.3.9.G1


Types of Income

Earned• Wage/Hourly

• Salary

• Tip

• Commission

Unearned• Interest

• Dividends (cash and stock)

• Pension

***

2.3.9.G1


Salary vs. Hourly

Would you rather be paid a salary or hourly wage?

2.3.9.G1


Payroll deductions

Mandatory Optional

2.3.9.G1


Pay Check Deductions

Mandatory Deductions

• Federal income tax

• State income tax

• Local income tax

• Social Security Tax

• Medicare Tax

Optional Deductions

• Health Insurance

• Life Insurance

• Disability Insurance

• Retirement Plan

***

2.3.9.G1


Federal Income Tax

Largest required deduction

How do you benefit from paying taxes?

2.3.9.G1


What is Social Security?

• Income for:o Retirees o People with disability

• 6.2%• Paid by each worker

and matched by employer

2.3.9.G1


What is Medicare?

• Helps pay for health care for individuals 65 and older

• 1.45%• Paid by each worker

and matched by each employer

2.3.9.G1


How Employers Further Support Employees

Both required at no cost to the employee

***

2.3.9.G1


How Employers Further Support Employees

Through Benefits:

•Forms of pay other than salary or wages

•Increase the overall value of disposable income

•Pay without work (vacation, sick, personal)•Perks (emotional satisfaction or social status)

•Educational Benefits•Retirement Plans•Insurance

***

2.3.9.G1


What is a pay stub?

Pay stub - outlines the deductions made to wages

Why is it important to review your pay stub?

Employee Information Pay Date: 6/11/2013

Name Identification Number

Address Pay RatePay Period

Joe Beakens 00112233 293 Michael Grove

$15.005/1 – 5/31/2013

Summary

Gross Income Total Personal Deductions

Net Income

Current $2,400.00 $747.00 $1,653.00

YTD $12,000.00 $3,735.00 $8,265.00

Earnings

Type Rate Hours Current YTD

Regular $15.00 160 $2,400.00 $12,000.00

Overtime 0 0 0 0

Deductions

Type Personal Deduction Employer Contribution

Federal income tax $249.40 0

State income tax $100.00 0

Social Security and Medicare $183.60 $183.60

Retirement plan $144.00 $144.00

Health insurance $100.00 $400.00

Workers’ compensation 0 $13.80

Unemployment insurance 0 $6.26

Employee Leave Balances

Type Beginning balance current

Beginning balance YTD

Used Current

Used YTD

Ending Balance

Personal 10 15 0 5 10

Sick 5 5 0 0 5

2.3.9.G1


Pay StubEmployee Information Pay Date: 6/11/2013




$15.005/1 – 5/31/2013

Summary


Net Income

Current $2,400.00 $747.00 $1,653.00

YTD $12,000.00 $3,735.00 $8,265.00

Earnings


Regular $15.00 160 $2,400.00 $12,000.00

Overtime 0 0 0 0

Deductions












Used Current

Used YTD

Ending Balance

Personal 10 15 0 5 10

Sick 5 5 0 0 5

2.3.9.G1






$15.005/1 – 5/31/2013

Summary


Net Income

Current $2,400.00 $747.00 $1,653.00

YTD $12,000.00 $3,735.00 $8,265.00

Earnings


Regular $15.00 160 $2,400.00 $12,000.00

Overtime 0 0 0 0

Deductions












Used Current

Used YTD

Ending Balance

Personal 10 15 0 5 10

Sick 5 5 0 0 5

2.3.9.G1


Pay Stub

• Gross income

• Net income

Current Year-to-date (YTD)

Amount this pay period

Amount from January 1 to last day of current pay period





$15.005/1 – 5/31/2013

Summary


Net Income

Current $2,400.00 $747.00 $1,653.00

YTD $12,000.00 $3,735.00 $8,265.00

Earnings


Regular $15.00 160 $2,400.00 $12,000.00

Overtime 0 0 0 0

Deductions












Used Current

Used YTD

Ending Balance

Personal 10 15 0 5 10

Sick 5 5 0 0 5

2.3.9.G1






$15.005/1 – 5/31/2013

Summary


Net Income

Current $2,400.00 $747.00 $1,653.00

YTD $12,000.00 $3,735.00 $8,265.00

Earnings


Regular $15.00 160 $2,400.00 $12,000.00

Overtime 0 0 0 0

Deductions












Used Current

Used YTD

Ending Balance

Personal 10 15 0 5 10

Sick 5 5 0 0 5

2.3.9.G1


Pay Stub

What are examples of deductions?





$15.005/1 – 5/31/2013

Summary


Net Income

Current $2,400.00 $747.00 $1,653.00

YTD $12,000.00 $3,735.00 $8,265.00

Earnings


Regular $15.00 160 $2,400.00 $12,000.00

Overtime 0 0 0 0

Deductions












Used Current

Used YTD

Ending Balance

Personal 10 15 0 5 10

Sick 5 5 0 0 5

2.3.9.G1






$15.005/1 – 5/31/2013

Summary


Net Income

Current $2,400.00 $747.00 $1,653.00

YTD $12,000.00 $3,735.00 $8,265.00

Earnings


Regular $15.00 160 $2,400.00 $12,000.00

Overtime 0 0 0 0

Deductions












Used Current

Used YTD

Ending Balance

Personal 10 15 0 5 10

Sick 5 5 0 0 5

2.3.9.G1






$15.005/1 – 5/31/2013

Summary


Net Income

Current $2,400.00 $747.00 $1,653.00

YTD $12,000.00 $3,735.00 $8,265.00

Earnings


Regular $15.00 160 $2,400.00 $12,000.00

Overtime 0 0 0 0

Deductions












Used Current

Used YTD

Ending Balance

Personal 10 15 0 5 10

Sick 5 5 0 0 5

2.3.9.G1


Summary: Critical Information

2.3.9.G1



Warm Up:

How do you calculate gross pay if you are an hourly employee?

Enter expenditures in student budget.

Agenda:

1.Warm-up2.Exemptions and Self-Employment P.P.3.Taboo game4.Getting Paid Math5.Reinforcement activity

3/12

2.3.9.G1



Warm Up:

What is the difference between the W2 and W4 form.

Agenda:

1.Warm-up2.Exemptions and Self-Employment P.P.3.Taboo game4.Reinforcement activity

3/12

Chapter 2

•W4 Form

•Filing Taxes

•Self Employment

2.3.9.G1


Starting a New Job

Form W-4 • Employee’s Withholding Allowance Certificate • Determines the amount of money withheld for taxes

2.3.9.G1


Form W-4 Allowances

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Allowances

Individuals may change their Form W-4 at any time

2.3.9.G1


W-4 Form

Federal and State income taxes are withheld according to income and amount of exemptions/Allowances claimed on the W-4 form

• Exemption = Allowances = Dependent (a person that depends on you for more than half of his or her support)

• Income tax breaks that reduce your taxable income

• More exemptions claimed = less tax withheld

• Can claim one for yourself (unless claimed by someone else)

• Married people with children can claim more exemptions

Exemption = Allowances = Dependent (a person that depends on you for more than half of his or her support)

2.3.9.G1


Exemptions

Assume each exemption is worth $3,700• Remember, you may claim yourself as an exemption,

your spouse, and all children

• Calculate the amount of exemptions for the Bell Family

2.3.9.G1


The Bell Family

Husband: Marty, salary $85,000 Wife: Katie, salary $65,000 Children: Jules, Patty, and Sue

• Total family income:• 85,000 + 65,000 = 150,000

• Subtract total exemptions:• 5 X 3,700 = 18,500

• Total taxable income:• 150,000 – 18,500 = 131,500

Husband: MartySalary: $85,000

Wife: KatieSalary: $65,000

Children:Sam, Patty, Oliver

2.3.9.G1


Filing Taxes

• W-2 form: used to report taxable income during the calendar year

• 1040EZ form: short tax return designed for single and joint filers with no dependents

• E-filing results in refunds received much more quickly than a paper return

2.3.9.G1


Self-Employment

Advantages Disadvantages• Make decisions: what

products/services to product• Set your own hours• Keep all the profits

Entrepreneur: person who takes the risk of being self-employed and owning a business

• Risk• If the business fails, the money invested is lost• Use your personal credit to keep the business running• In the first three years, there will be long hours with little pay

2.3.9.G1


Types of small Businesses

Slide 32

o Lifestyle businessesoStays small and exists for the life of the owner

o Venture businessesoContinues to grow to become a corporationoContinues after the life of the owner

2.3.9.G1


Taboo

The object of Taboo is for a player to have his/her team guess the term at the top of a Taboo card by describing the term without using any of the words listed underneath it.

www.online-stopwatch.com

2.3.9.G1


Homework

• First page of “Getting Paid Math”

2.3.9.G1



Warm Up:

If you have not already done so, calculate your bi-weekly gross pay based on your annual income for the career project.

Ex) 62,000/26 = $2,384.62

Agenda:

1.Warm-up2.Study Guide3.Project: Career, Resume

3/12

2.3.9.G1



Warm Up:

Quiz Today!!

Take out your study guide and review.

Update your student budget with any changes.

Agenda:

1.Warm-up2.Ch2 Quiz3.Project: Career, Resume, Paycheck

3/12

Documents

2.3.9.G1 © Take Charge Today –August2013 – Getting Paid– Slide 1 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer