My Paycheck How Much You’ll Make 1 - …fhsbusinessmeeting.wikispaces.com/file/view/My Paycheck - Student...Although there are rewards other than money that we receive from our jobs,

Although there are rewards other than money that wereceive from our jobs, most workers would considerpayday their number one reason for working.

Accomplishing a goal or being useful to others may beimportant to us, but it still takes money to live. In fact,for many people, how much they make is how theymeasure their success.

We all need payday, but payday can be quite differentfrom one job to another and may be a major factor in thetype of job you choose. How much you'll be paid in yourchosen career will depend on several factors:

Supply and DemandIn any market economy, supply and demand is alwaysthe most important factor in determining the cost ofeverything, including labor.

If your skill or talent is in demand, you can expect to bepaid well and see your income increase in the future. If youhave no skill or talent, if there is a large supply of yourtalent, or no demand, you can't expect to be paid well.

That's why it's very important to study the current andfuture job market when you're deciding on a career.

Gary, Marshall, and Harry Cohen are brothers. Garyplays professional football and earned $2,400,000last year. Marshall is a physician who earned$240,000. Harry is a teacher who earned $43,500.

Do you think this is right? Why?

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My Paycheck How Much You’ll Make 1

The Cost of LivingThe overall cost of living in a community will also affecthow much you’re paid. For example, an electrician inSan Francisco or New York City will be paid a muchhigher hourly wage than an electrician in Peoria, Illinoisor Columbia, South Carolina.

Union OrganizationThe purpose of any labor union or professionalassociation is to improve the wages and workingconditions of their members.

For example, a union of unskilled labor in a factory mayforce wages higher by negotiation or through asuccessful strike.

However, union membership is on the decline in today'sglobal markets because unions can no longer guaranteetheir members job security.

A professional organization such as the AmericanMedical Association, by controlling the number ofphysicians, is able to keep incomes much higher in theUnited States than in other countries.

Public or Private SectorIf you choose to work in the public sector, you may findyour income lower than equivalent jobs in the privatesector because you're paid with tax money.

For example, an engineer who decides to teachengineering in a public university may be paid much lessthan he or she would earn working for a privateengineering firm.

A lawyer will earn less as a public defender than as aprivate defense lawyer and a policeman can probablyearn more in the private sector.

The lower income may be offset by the satisfaction youreceive from public service, from job security, or attractivefringe benefits such as a generous retirement plan.

Social ValueThe importance to society of an occupation has neverbeen a very significant factor in determining wages.

Most of us would agree that teachers are more importantto society than professional athletes or movie stars, buta small supply and the demand for their talents drivestheir incomes into the millions while teachers earnaverage salaries.

Name: _____________________________________ Class: ______________________ Period: ____

My Paycheck Jerry Kramer 2

Jerry Kramer is an electrician. For the past several years he’s been working for a contractorbuilding a new housing subdivision in a suburb northwest of Chicago. The project is aboutfinished and Jerry has decided to relocate. Listed below are eight cities he’s consideringwhere he knows he can get work.

1. Compute the annual wage by multiplying the hourly wage by 2080 (40 hrs. x 52weeks). Round your answers to the nearest dollar.

2. Compute the real wage by dividing the annual wage by the cost of living index (U.S.average = 100). Round your answers to the nearest dollar.

Hourly Annual Cost of Living Real Sales Tax/City Wage Wage Index Wage Income Tax

Baton Rouge, LA . $15.24 $___________ 103.2 $___________ 8.50% / 4.00%$15.24 x 2080 Annual Wage / 1.032

Beaumont, TX . . . . 18.71 ___________ 87.5 ___________ 8.25% / 0.00%

Bremerton, WA . . . 22.36 ___________ 100.6 ___________ 8.35% / 0.00%

Freeport, NY . . . . . 30.11 ___________ 134.4 ___________ 8.05% / 7.12%

Napa, CA . . . . . . . . 31.37 ___________ 148.0 ___________ 8.10% / 6.00%

Newark, NJ . . . . . . 30.55 ___________ 96.9 ___________ 6.00% / 2.45%

Oakland, CA . . . . . 31.18 ___________ 140.0 ___________ 8.25% / 6.00%

Sheboygan, WI . . . 19.73 ___________ 91.8 ___________ 5.40% / 6.93%

If you were in Jerry’s place, which of theseeight cities would you choose? Why?

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My Paycheck Cheryl Watkins 3

Cheryl Watkins has just graduated as a registered nurse and is looking for her first full-time job. Listed below are eight cities where she has been offered a job.

1. Compute the annual wage by multiplying the hourly wage by 2080 (40 hrs. x 52weeks). Round your answers to the nearest dollar.

2. Compute the real wage by dividing the annual wage by the cost of living index(U.S. average = 100). Round your answers to the nearest dollar.


Alexandria, LA . . . $20.50 $___________ 101.5 $___________ 8.50% / 4.00%$20.50 x 2080 Annual Wage / 1.015

Baltimore, MD . . . 29.72 ___________ 92.4 ___________ 5.00% / 7.45%

Columbia, MO . . . . 20.77 ___________ 102.4 ___________ 6.70% / 6.00%

Florence, SC . . . . . 24.16 ___________ 107.3 ___________ 5.00% / 6.00%

Gainesville, FL . . . 22.55 ___________ 90.5 ___________ 6.35% / 0.00%

Jackson, TN . . . . . 19.02 ___________ 103.2 ___________ 6.25% / 0.00%

New York, NY . . . . 30.68 ___________ 193.4 ___________ 8.25% / 10.52%

San Jose, CA . . . . . 32.95 ___________ 211.3 ___________ 8.10% / 6.00%

If you were in Cheryl’s place, which ofthese eight cities would you choose? Why?

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My Paycheck Gary Hart 4

Gary Hart is a third generation firefighter. He’s spent his whole life living in the sametown as his father and grandfather and has decided to relocate. Listed below are eightcities which have offered him a job.

1. Compute the annual wage by multiplying the hourly wage by 2080 (40 hrs. x 52 weeks). Round to the nearest dollar.

2. Compute the real wage by dividing the annual wage by the cost of living index (U.S. average = 100). Round your answers to the nearest dollar.


Anchorage, AK . . . $13.54 $___________ 123.7 $___________ 0.00% / 0.00%$13.54 x 2080 Annual Wage / 1.237

Barnstable, MA . . 22.12 ___________ 135.6 ___________ 5.00% / 5.95%

Fayetteville, NC . . 11.46 ___________ 104.9 ___________ 6.15% / 7.00%

Gary, IN . . . . . . . . 16.70 ___________ 84.2 ___________ 5.00% / 3.40%

Los Angeles, CA . . 27.79 ___________ 140.0 ___________ 8.10% / 6.00%

Newark, NJ . . . . . . 29.21 ___________ 96.9 ___________ 6.00% / 2.45%

Redding, CA . . . . . 13.55 ___________ 107.4 ___________ 8.10% / 6.00%

San Jose, CA . . . . . 32.37 ___________ 211.3 ___________ 8.10% / 6.00%

If you were in Gary’s place, which of theseeight cities would you choose? Why?

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Write a letter to the editor supporting or opposing a new $7.50 an hour minimum wage which would beincreased each year by the rate of inflation. Write your letter from the point of view of one of the following:

• Yourself• A small businessman with five employees making minimum wage.• A union member• A worker making minimum wage• A Republican congressman considering passage of the bill.

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My Paycheck Letter To The Editor 5

My Paycheck How You’ll Be Paid 6

People are paid differently based on the type of workthey do. Knowing how you'll be paid may be a factor indeciding on a career.

1. A salary is a fixed amount paid to an employee fora specific period of time such as $30,000 a year.Typically, the salary is not attached to a specific numberof hours of work in a day or week. This type of paymentis most common in white collar and professional jobs.

2. A wage is an amount paid for a unit of time workedsuch as $8 an hour. This type of payment ismost common in blue collar jobs.

3. A fee is a flat amount paid to a workerfor a job normally specified by a contract.

4. A commission is an amount of money paidto a salesperson or agent for performing aservice. This type of payment is most common insales jobs where the salesperson receives apercentage of the value of the product sold suchas 6% of a value of a house sold by a realtor.

5. A piece rate is an amount paid for each itemproduced. This type of pay is found in manufacturing,assembly work, and other repetitive jobs.

6. Tips are most common in the service industry andare the main source of income for most waiters andwaitresses.

In addition to these, an employee may also receive fringebenefits, profit sharing, or bonuses that increase real income.

7. Fringe benefits are non-wage forms of paymentreceived by workers. The most common are healthinsurance, life insurance, sick leave, and pensions.

These can amount to substantial amounts of incomewhen translated into actual dollars the employer has topay or amounts the employee would have to pay.

8. Profit sharing allows employees in the private sectorto share in the profits of the company they work for. Thismay be in addition to an employee's salary or wage oractually be structured as part of it.

9. Bonuses are additional amounts of money receivedby an employee at the discretion of the employer or aspart of a contract that specifies certain bonus amountsbased on set goals. Many companies pay Christmasbonuses that may vary from year to year based on how goodthe year was.

How Are They Pa id?After each of the following, write the numbers ofthe various ways these people could be paid.

An accountant........................

A public school teacher ......... ______________

A self-employed plumber ...... ______________

A small business owner ........ ______________

A salesman............................. ______________

A corporate executive ............ ______________

A waiter or waitress.............. ______________

A factory production worker . ______________

A novelist ............................... ______________

An investor ............................ ______________

A car salesman ...................... ______________

A massage therapist.............. ______________

A carpenter working for a

building contractor............. ______________

A secretarial temp ................. ______________

An independent song writer . ______________

An inventor............................ ______________

If you're self-employed, your income can come fromprofits or royalties.

10. Profits are the amount left over after all theexpenses of a business are paid. Whether the business isa retail store, a lawyer charging fees, or a landlordrenting property, there will only be profit if income islarger than expenses.

11. Royalties are a percentage of the income from awork paid to the author, composer, or inventor. The totalamount of royalties will depend on actual sales and anyguarantees specified in the contract.

When it comes to deciding on a career, you may want tothink about which type of income is best suited to yourpersonality. You may prefer working for someone elseand knowing you'll be getting a paycheck every twoweeks rather than taking the risks of a businessmanand trying to make a profit.


As an employee you'll probably be paid weekly, biweekly(every two weeks), or monthly. How much you receive ineach paycheck will depend not only on how much you'repaid, but also how you're paid.

• If you're paid a salary, your gross pay will be yoursalary divided by the number of pay periods.

One advantage of being salaried is that you know howmuch you'll receive in each paycheck.

One disadvantage is that the amount of time you'reactually required to work may not be well defined.Therefore, you may find yourself working long hourseach week without receiving any overtime.

• If you're paid an hourly wage or hourly rate, it willdepend on how many hours you worked and if youworked overtime or not.

Most blue collar professions such as plumbers,electricians, and factory workers are paid by the hour.Most temps are paid by the hour.

Some white collar professionals are also paid anhourly rate. For example, many lawyers andaccountants are paid this way.

• If you're paid commissions, it will depend on howmuch you sell.

Some sales people are paid only commissions andothers receive both a base salary or wage, pluscommissions.

• If you're paid on a piece rate, it will depend on howmany items you can make.

• If you receive tips, it will depend on how well yourcustomers appreciated your service.

Like sales people, some service workers receive a basehourly wage as well as the tips they receive.

• And if you're paid royalties, it will depend on howmuch of your work is sold.

Even the self-employed typically pay themselvesperiodically out of their revenue even if they don't showa profit at the end of the year.

Joel is a painting contractor. He has offered to paintyour house for a flat fee or for an hourly wage plusmaterials. Which would you choose and why?

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You've been hired to design a piece of software.You've been offered a flat fee for the project or a10% royalty on total sales. Which would you chooseand why?

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You've taken a job as a car salesman. You can eitherbe paid an hourly wage or work on a straightcommission. Which would you choose and why?

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My Paycheck How You’ll Be Paid 7


Name: ____________________________________ Class: _______________________ Period: ____

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You've been hired as one of the writers on a new PBS show called Working Today hosted byBen and Bonnie McIntyre. Your first assignment is to outline the script for a thirty minuteshow about the different ways people are paid.

WORKING

WITH

BEN AND BONNIE MCINTYRE

My Paycheck Working Today 8

My Paycheck Ruben’s Paycheck 9

No matter how you get paid, whether it's a salary, anhourly wage, or some other method, what you make isnot what you get to keep.

You may have a salary of $30,000 a year or earn $9.00an hour or a 5% commission on sales of $50,000. That'scalled your "Gross Pay".

But what you actually get to spend is your "Net Pay"and that will be less, much less!

The difference between your gross pay and your net payare "Deductions". The four most common deductions are:

• Federal Income Tax• State Income Tax• Social Security• Medicare

You may also have deductions for city income tax, healthinsurance, retirement plans, or union dues.

Assume you're single, make $10.00 an hour, and worktwo, forty hour weeks. Your biweekly gross pay would be$800.

But your employer would make the following deductionsfrom your gross pay:

$ 91.00 (federal income tax for a single person)49.60 (social security tax at 6.2%)11.60 (medicare tax at 1.45%)

24.00 (state income tax at 3%)176.20 (Total deductions)

Your net pay would be:$800.00 (gross pay)

- 176.20 (total deductions)$623.80 (net pay)

If you don't understand how your paycheck is calculatedor why a certain deduction is being made, ask youremployer.

And be sure you plan your budget based on your net payand not your gross earnings.

Do The MathRuben Garza just graduated from high school andtook a job as a lathe operator at Wood CraftFurniture.

He's paid $7.15 an hour and receives a paycheckevery two weeks. Compute his biweekly pay usingthe following directions.

1. Compute his gross pay for the two weeks bymultiplying his hourly rate by the 80 hours heworked.

2. Compute his paycheck deductions by multiplyinghis gross pay by each of the followingpercentages. Round all answers to the nearestcent.

A. Federal Income Tax 6.10% B. Social Security Tax 6.20%C. Medicare Tax 1.45%D. State Income Tax 3.00%

3. Add his total deductions for the pay period.

4. Subtract his total deductions from his gross payto compute his net pay.

Gross Pay................................ $______________

Federal Income Tax $____________

Social Security $____________

Medicare $____________

State Income tax $____________

Total Deductions....................... $______________

Net Pay .................................. $______________


My Paycheck Pam’s Paycheck 10

Pam Porter works part time after school and on weekends at a day care center. She's paid$6.15 an hour and receives a paycheck every two weeks. Complete her April 28th paycheckusing the following directions.

1. To compute her gross pay for the two weeks multiply her hourly rate by the 45 hoursshe worked.

2. Compute the deductions from her gross pay using the following percentages. Round tothe nearest cent.

A. Federal Income Tax = 1.40% (gross pay x .014 = deduction )B. Social Security Tax = 6.20%C. Medicare Tax = 1.45%D. State Income Tax = 3.00%

3. Add her total deductions for the pay period.

4. Subtract her total deductions from her grosspay to compute her net pay.

5. Complete the paycheck on April 28th for theamount of her net pay.


KKiinnddeerr CCaarree ,

Pay to the order of Pam Porter __ (5) $ _________

(5) Dollars

Jo Beth Williams - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

(1) Gross Pay $ __________ (2) Fed. Income Tax $ __________(3) Total Ded. - $ __________ Social Security $ __________(4) Net Pay $ __________ Medicare $ __________

State Income Tax$ __________ (3) _________

What percentage of her gross pay isbeing deducted?

_________ %

My Paycheck Ray’s Paycheck 11

Ray Thornton has begun work as a surveyor for Consolidated Commercial Construction. He receives a weeklypaycheck and is paid $12.50 an hour for the first 40 hours of work each week and time and a half forovertime. During the past week he worked 46 hours. Use the directions on the right to complete his paycheck.

1. To compute his gross pay:

A. Multiply his regular hours by his regular hourly wage.B. Multiply his overtime hours by his overtime hourly wage ($12.50 x 1.5 = overtime wage).C. Add your answers to A and B.

2. Compute the deductions from his gross pay using the following percentages. Round to the nearest cent.

A. Federal Income Tax = 10.00% (gross pay x .10 = deduction )B. Social Security Tax = 6.20%C. Medicare Tax = 1.45%D. State Income Tax = 3.50%E. Union Dues = 1.00%

3. Add his total deductions for the pay period.

4. Subtract his total deductions from his gross pay to compute his net pay.

5. Complete the paycheck on June 14th for the amount of his net pay.


Consolidated Commercial Construction ,

Pay to the order of Ray Thornton __ (5) $ _________

(5) Dollars

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State Income Tax$ __________Union Dues $ __________ (3) _________

Angela Houston has taken her first full-time job as a secretary Lincoln Elementary School. Her salary is$21,000 a year and she receives a paycheck every two weeks. Use the following directions to complete herpaycheck for November 15th.

1. Compute her gross pay by dividing her yearly salary by the number of biweekly pay periods in a 52 weekyear. Round to the nearest cent.

2. Compute the deductions from her gross pay using the following percentages. Round to the nearest cent.A. Federal Income Tax = 11.3% (gross pay x .113 = deduction )B. Social Security Tax = 6.20%C. Medicare Tax = 1.45%D. State Income Tax = 4.0%


4. Subtract her total deductions from her gross pay to compute her net pay.

5. Complete the paycheck for the amount of her net pay.

Next year, she'll receive a 4.5% raise. 1. What will her new yearly salary be? _______________2. What will her new, biweekly gross pay be? (Round to the nearest cent.) _______________3. If the rate of inflation for the year is 3%, will she have gotten a real salary increase? Explain.

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My Paycheck Angela’s Paycheck 12


SPRINGFIELD SCHOOL DISTRICT ,

Pay to the order of Angela Houston (5) $ _________

(5) Dollars

Roger Stonewall - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -


State Income Tax$ __________ (3) $ ________

Debra Newbern graduated from college in June and took a job as a sales representative for ComTechComputers. She earns a 4% commission on each sale and is paid once a month. Use the directions below tocomplete her November 2nd paycheck.

She made the following sales during October.

1. Compute the total.

2. Multiply her total sales by 4% (.04) todetermine her commissions for the month.This will be her gross pay.

3. Compute the deductions from her gross pay using the following percentages. Round to the nearest cent.

A. Federal Income Tax = 16.30% (gross pay x .163 = deduction )B. Social Security Tax = 6.20%C. Medicare Tax = 1.45%D. State Income Tax = 3.50%


5. Subtract her total deductions from her gross pay to compute her net pay.

6. Complete the paycheck for the amount of her net pay.

What is the incentive of commissioned sales?

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C O M T E C H C O M P U T E R S ,

Pay to the order of Debra Newbern (5) $ _________

(5) Dollars

Aaron Stewart - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- (1) Gross Pay $ __________ (2) Fed. Income Tax $ __________(3) Total Ded. - $ __________ Social Security $ __________(4) Net Pay $ __________ Medicare $ __________

State Income Tax$ __________ (3) $ ________

1. $ 3,5002. $ 1,7503. $ 8,4004. $ 2,4255. $ 980

6. $ 6,7507. $ 9,2008. $ 1,6909. $10,550

10. $ 5,450

11. $ 3,82012. $ 4,40013. $ 90014. $ 12,400Tot $_________

My Paycheck Debra’s Paycheck 13


John Neeley is the new assistant manager of the Phone Shop in Northland Mall. He receivesa yearly salary of $24,000 plus sales bonuses. He earns a 5% bonus on monthly sales above$40,000 and a 10% bonus on monthly sales above $50,000. He's paid every two weeks andhis bonus for the previous month is divided equally between his two paychecks in the currentmonth. Use the directions on the right to complete his paycheck for February 18th.

T h e P h o n e S h o pT h e P h o n e S h o p ,

Pay to the order of John Neeley _ _____ _ (5) $ _________

(5) ____ _ Dollars

Meredith Wilson - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -


State Income Tax$ __________Other $ __________ (3) $ __________

1. To compute his gross pay:

A. Divide his yearly salary by the number of biweekly pay periods in a 52 weekyear. Round to the nearest cent.

B. Sales for the previous month were $53,432.96. Determine his bonus for the month anddivide it by 2. Round to the nearest cent.

C. Add your answers to A and B.

2. Compute the tax deductions from his gross pay using the following percentages. Round to the nearest cent.A. Federal Income Tax = 11.6%

(gross pay x .116 = deduction )B. Social Security Tax = 6.20%C. Medicare Tax = 1.45% D. State Income Tax = 4.50%

3. Total his deductions for the pay period including $47.45 for health insurance and $25 for payroll savings.

4. Subtract his total deductions from his gross pay to compute his net pay.

5. Complete the paycheck for the amount of his net pay.

My Paycheck John’s Paycheck 14


1. Add his total expenses for the month

1. Rent ...................................... 850.002. Wages ................................... 2,458.693. Video Purchases .................. 5,756.484. Utilities ................................ 634.825. Supplies ............................... 126.346. Loan Payment ..................... 1,562.897. Payroll Taxes ....................... 475.238. Equipment Repair ............... 172.549. Insurance ............................. 324.94

Total Expenses __________

Subtract his total expenses from his total revenue of $15,578.22 to determine his gross income.

2. Compute the deductions from his gross income using the following percentages. Round to the nearest cent.

A. Federal Income Tax = 9.00% (gross income x .090 = deduction )

B. Social Security Tax = 12.40%C. Medicare Tax = 2.90%D. State Income Tax = 3.50%

3. Add his total deductions.

4. Subtract his total deductions from his gross income to compute his net income.

5. Write a check on November 2nd for his net income.

Eddie Rodriquez owns a video rental store. His income each month is the difference betweenhis total revenue and total expenses. Use the directions on the right to determine his income.

Family VideoFamily Video ,

Pay to the order of Eddie Rodriquez _ (5) $ ____________

(5) ____ _ Dollars

Eddie Rodriquez - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -


State Income Tax$ __________ (3) $ ________

HOW DO EDDIE'S SOCIAL SECURITY AND MEDICARE TAXES DIFFER FROM HIS EMPLOYEES?________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

My Paycheck Eddie’s Income 15


You've been hired by the Department of Labor to design a poster to help first time employeesunderstand the difference between their gross pay and their net pay. The poster shouldinclude a catchy phrase such as "Know Your Net!" and illustrate how you get from gross payto net pay.

My Paycheck Know Your Net 16

My Paycheck Types Of Fringe Benefits 17


Fringe benefits are non-wage forms of paymentreceived by workers. The most common are healthinsurance, life insurance, sick leave, and pensions.These can be substantial amounts of income to a workerand add substantially to an employers expenses.

• 401(k) Plan: A type of retirement plan in whichemployees voluntarily defer part of their salary forretirement. To encourage employees to participate inthe plan, an employer may offer matchingcontributions. In recent years, these have become themost popular form of retirement plans.

401(k) plans are also portable which means that theemployee can move the accumulated assets to a newemployer’s plan when changing jobs.

401(k) plans offer the double benefit of current taxsavings (because contributions reduce the employee’staxable salary) and tax-deferred growth on theemployee’s invested contributions.

Similar plans are 403(b) for employees of non-profitorganizations and 457 for state and municipalemployees.

• Bonus: A payment in addition to the normal wage orsalary as a reward for exceeding the terms of acontract or for work well done.

• Clothing Allowance: When specific clothing oruniforms are required for a job, the employer mayprovide the clothing or compensate the employee forthe cost.

• Company Car:: A company owned vehicle providedfor an employee’s use. This may also be available tothe employee when not working.

Harold Muntean just graduated from college with a degree in accounting. He is going to work for theaccounting firm of Colmark, Dodge, and Downie. The human resources director has explained to Harold thathis starting salary will be $32,000, but that his entire “package” will be worth more than $45,000.

What do you think the human resources director meant?

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• Health Insurance: Individual or group medicalinsurance that can cover a broad range of medicalcosts based on the scope of the plan. These caninclude: Physician’s Fees • Medical Tests •Laboratory Fees • Prescription Drugs •Hospitalization • Surgical Fees • RehabilitationCosts • Dental Care • Eye Care

Today, fewer employers (especially in the privatesector) are offering health insurance to theiremployees because of the skyrocketing costs ofmedical care and health insurance premiums. It isalso common today for employers and employees toshare the cost of health insurance premiums

• Life Insurance: Insurance providing for payment of asum of money to a named beneficiary upon the deathof the policyholder.

• Paid Personal Leave: A certain number of days eachyear in which an employee may be absent from workfor personal reasons and still receive regular salary orwage payments. The leave may or may not requireapproval by the employer.

• Paid Sick Leave: A certain number of days each yearin which an employee may be absent from work for illnessand still receive regular salary or wage payments. Thesedays may be cumulative.

• Paid Vacation: A certain number of days each year inwhich an employee may be absent from work for vacationand still receive regular salary or wage payments.

• Pension: Regular payments made to employees when theyretire. Afund is typically created and maintained on a regularbasis by the employer to provide benefits under a pensionplan. A minimum number of years of service is typicallyrequired to become part of the pension plan. The size of thepayments usually increase based on the years of service.

My Paycheck More Than The Salary 18


Debra Patton has just graduated as a registered nurse. She is planning to apply for the position shown in the adon the right. What questions do you think she should ask the human resources director about each of thefollowing fringe benefits being offered?

2-5 Weeks Annual Vacation:

____________________________________________

____________________________________________

____________________________________________

____________________________________________

____________________________________________

____________________________________________

10 Paid Holidays:

____________________________________________

____________________________________________

____________________________________________

____________________________________________

____________________________________________

____________________________________________

Sick Leave:

_________________________________________________________________________________________

_________________________________________________________________________________________

_________________________________________________________________________________________

_________________________________________________________________________________________

Health Insurance:

_________________________________________________________________________________________

_________________________________________________________________________________________

_________________________________________________________________________________________

_________________________________________________________________________________________

401K:

_________________________________________________________________________________________

_________________________________________________________________________________________

_________________________________________________________________________________________

_________________________________________________________________________________________

Iowa City VA Medical CenterThe following opportunities are immediately available

Inpatient RNand ICU RN

• Weekend & off-tour shift differential• 2-5 weeks annual vacation• 10 paid holidays• Tuition support program• RN Career Advancement Programs• Sick leave• Health insurance• 401K• $6,000 sign-on bonus for inpatient RNs

Contact Human Resources at555.555.5555

The Dept of Veterans Affairs is an equal opportunity employer

My Paycheck More Than The Salary 19


Ted Jankowski wants to be a long haul truck driver. He is planning to apply for the position shown in the adon the right. What questions do you think he should ask about each of the following fringe benefits beingoffered?

Low Cost Medical and Dental Insurance:

____________________________________________

____________________________________________

____________________________________________

____________________________________________

____________________________________________

____________________________________________

Free Vision and Life:

____________________________________________

____________________________________________

____________________________________________

____________________________________________

____________________________________________

____________________________________________

50%-100% Company-matched 401(k):

_________________________________________________________________________________________

_________________________________________________________________________________________

_________________________________________________________________________________________

_________________________________________________________________________________________

Paid Vacation:

_________________________________________________________________________________________

_________________________________________________________________________________________

_________________________________________________________________________________________

_________________________________________________________________________________________

Paid Holidays:

_________________________________________________________________________________________

_________________________________________________________________________________________

_________________________________________________________________________________________

_________________________________________________________________________________________

GO THE DISTANCEwith

Randall National

As a Randall National driver, you’ll have athicker wallet because you’ll rack up more

miles and earn more money

• No experience necessary• Company-paid CDL training for qualified

candidates• $31,500-$39,500 1st year (no experience)• Low cost medical and dental insurance• Free vision and life• 50%-100% company-matched 401(k)• Paid vacation & holidays

Randall NationalMiles of Advantages

EOE M/F/D/V

My Paycheck Types Of Health Insurance 20


Private health insurance has always been considered the most valuable fringe benefit receivedby employees. Today, however, many employees are losing this benefit because the explodingcost of medical care and health insurance is making it unaffordable for employers.

Workers are also covered by public insurance plans payed for through payroll taxes.

For each of the following situations, list the numbers of the types of health insurance thatapply. Use the tutorial on page 2 to help make your choices.

Julie just started her first full time job. Which types of insurance might shereceive from her employer as a fringe benefit? ....................................................

Gary just received his first paycheck. For which types of insurance could therebe a deduction from his gross pay? .......................................................................

Steve had an attack of appendicitis while at work. He spent a week in thehospital before he could return to his job. He had sick leave so he didn't lose anyincome. Which types of insurance could help pay his medical expenses? ..........

For which types of insurance might an employer pay all or part of the costs? .

Gail was injured on the job. She won't be able to work for over a year. Whichtypes of insurance would help pay her medical expenses and loss of income? ..

Sharon is planning to be off work for two days to have some extensive dentalwork done. Which types of insurance could help pay her medical expenses?....

Which types of insurance are available as the result of a state or federal law?

Pete has been laid off for over a year. He's been unable to find another job andno longer has any health insurance of his own. If he became ill and had to spenda week in the hospital, which type of insurance would help pay his medicalexpenses?.................................................................................................................

Karen decided to start her own business. Which types of private insurancecould she buy?.........................................................................................................

Which type of insurance would help pay medical expenses when you're 65 andretired? ....................................................................................................................

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

___________

___________

___________

___________

___________

___________

___________

___________

___________

___________

1. Fee-for-Service2. HMO3. Point-of-Service Plan4. Preferred Provider Org.

5. Catastrophic Disease6. Disability Income7. Long Term Care8. Medicaid

9. Medicare10. Social Security Disability11. Worker's Compensation

My Paycheck Types Of Health Insurance 21


Private Health Insurance:• Fee-For-Service: With a traditional fee-for-service health insurance plan, you choose the doctor, the clinic, or the hospital you

want and they bill for the services they provide. You're required to pay a deductible before the insurance company begins paying.After you've paid the deductible, the coinsurance provision goes into effect and expenses are divided between you and theinsurance company. The most common coinsurance is 80%-20% which means the insurance company pays 80% of the coveredexpenses and you pay the remaining 20%. The policy will also contain a stop loss provision that sets a maximum on your out-of-pocket expenses for the year such as $5,000. At that point the insurance company begins paying 100% of all covered expenses.Finally, there will be a lifetime maximum such as $2 million or $5 million. This type of coverage may be available from youremployer as group insurance or you can purchase it for yourself and your family.

• HMO (Health Maintenance Organization): An HMO is basically a prepaid group medical service. In exchange for afee, the patient (subscriber) can use the services of a network of doctors who provide a complete range of medical care. Whenyou join an HMO, you choose a doctor within the organization to be your primary care physician. If you have a medical problem,this is the doctor you see first and the one who coordinates your medical care. HMOs will only pay for services provided bydoctors and hospitals within the plan. If you go outside the plan, you must pay the complete cost of care. Within the plan, youronly cost may be a small copayment (i.e $10 or $12 per doctor visit or prescription) and there are no insurance claim forms to fillout. This type of coverage is normally only available as group insurance.

• Point-Of-Service Plan: A point-of-service plan combines some of the characteristics of HMOs and PPOs. Patients in a POShave a primary-care doctor who provides care and controls referrals to specialists. If patients use their primary care doctor, theypay a standard copayment. If they use doctors outside the plan, they pay a deductible and higher copayments. This type ofcoverage may be available from your employer as group insurance or you can purchase it for yourself and your family.

• Preferred Provider Organization: With this type of managed care, the insurer negotiates with a group of doctors andhospitals to provide health care at a certain price per service. The insurer then offers a financial incentive to use those particulardoctors and hospitals. For example, a PPO might pay 80% or 90% of a medical bill if you go to one of its approved doctors, butonly 60% or 70% if you go to another doctor. This type of coverage may be available from your employer as group insurance oryou can purchase it for yourself and your family.

Specialized Health Insurance• Catastrophic and Specified-Disease Insurance: This type of insurance is designed to take over when your basic health

insurance policy runs out. If you have an illness that lasts for months or years or requires many operations, the lifetime limit onyour basic policy may run out even if it's $1 million or more. A catastrophic illness policy extends that lifetime limit. Policies arealso available that cover only a specific disease such as cancer.

• Disability Income Insurance: Disability income insurance is designed to replace lost income resulting from illness oraccident. When buying this type of insurance, ask yourself these important questions: (1) Do you need it? (2) How much do youneed? (3) How is disability defined? (4) When would benefits begin? (5) How long would benefits last?

• Long Term Care Insurance: This type of insurance is designed to cover your expenses if you have a chronic illness ordisability that requires long-term medical, nursing, or personal care that your regular health insurance doesn't cover. For example,you might suffer a stroke that requires months of nursing home care or round-the-clock nursing care at home plus rehabilitationtreatment.

Public Health Insurance• Medicaid: Medicaid is a federal-state cooperative program designed to ensure that people with low incomes or disabilities

regardless of age can receive health care. Each state decides who is eligible for medicaid benefits and what services will beincluded.

• Medicare: Medicare is the federal health insurance program for the elderly and for those under age 65 with certain disablingconditions. It consists of two parts: (1) Hospitalization Insurance which is financed by a payroll tax on all workers andemployers and (2) Supplementary Medical Insurance which is financed with premiums paid by those who participate in theprogram and from general tax revenues.

• Social Security Disability: Social security disability benefits are paid to workers who are: (1) covered under socialsecurity (2) have been disabled at least five months (3) whose disability is expected to last at least twelve months and (4)who are unable to do any work whatsoever. If you're eligible, disability income benefits are paid to you, your spouse, andyour dependent children.

• Worker's Compensation: This type of insurance provides disability benefits, loss-of-income, medical care payments, anddeath benefits for workers who are hurt, become ill, or are killed on the job. Coverages and compensation amounts vary fromstate to state. Payment for this insurance is made entirely by employers through a payroll tax.


Bowman Publishing offers its employees health insurance through the Metropolitan InsuranceGroup. The company pays the full cost of each employee’s individual coverage and a portionof each employee’s family coverage. There are also several different plans that each employeecan choose from.

Use the descriptions of the company’s health insurance plan on pages 24 and 25 to answereach of the following questions concerning the medical bills of several company employees.

1. Joyce Mathews made two visits to her doctor's office with a medical problem. Her doctordecided to do an outpatient surgical procedure in his office. Her total costs included:• First Office Visit..................................... $ 65.00 (professional services b.)*

X-rays (in office) .................... 140.00 (professional services b.)*

• Second Office Visit ................................. 65.00 (professional services b.)*

Lab Tests (in office)................ 85.00 (professional services b.)*

• Surgical procedure ................................. 1,400.00 (professional services a.)*

Compute the portion of her costs that would be paid by each of the following six MedcarePlans. *Her costs all fall under Professional Services.

$20 Co-Pay Plan $30 Co-Pay Plan $40 Co-Pay Plan

In- Network Out-of-Network In- Network Out-of-Network In- Network Out-of-Network

$ $ $ $ $ $

My Paycheck Metropolitan Insurance 22

2. During the year, the Marshalls had prescriptions filled for 8 generic drugs and 5 brand namedrugs. Compute their cost based on the following six Medcare Plans (see Prescription Drugs).



$ $ $ $ $ $

3. After suffering a mild stroke, John Carlson spent 20 days in a skilled nursing facility at a costof $475 a day. Compute the portion of his costs that would be paid by the following six MedcarePlans. His costs all fall under Skilled Nursing Facilities.



$ $ $ $ $ $



4. Jeff Feinstein was in the hospital for a stomach disorder. When he was released, he receivedthe following bills:

• Room and Board (semi-private) ............ $6,195.00 (inpatient hospital services a.)*• Laboratory Tests .................................... 1,300.00 (inpatient hospital services a.)*• Blood Transfusions................................. 700.00 (inpatient hospital services a.)*• X-Rays 500.00 (inpatient hospital services a.)*• Use of the Operating Room ................... 2,100.00 (inpatient hospital services a.)*• Intensive Care........................................ 750.00 (inpatient hospital services a.)*• Medicine and Drugs............................... 500.00 (inpatient hospital services a.)*• Surgical Fees & Anesthesia................... 7,500.00 (professional services a.)**• In-Hospital Doctor Visits ....................... 250.00 (professional services a.)**

Compute the portion of his costs that would be paid by each of the following six Medcare Plans.His costs fall under *Inpatient Hospital Services (section a.) and **ProfessionalServices (section a.), but you must also consider Out-of-Pocket Maximums.

5. Jennifer Wright was suffering from depression. She spent 12 days being treated in thehospital at a cost of $10,590. She was given two prescriptions for brand name drugs. Shefilled one 8 times and the other 4 times at a total cost of $1,140.00. She also made 30visits to a therapist at a cost of $75 a visit. Compute the portion of her costs she willhave to pay if she uses the $30 Co-Pay, In-Network Plan. Her costs fall under MentalDisorders and Prescription Drugs.

$

6. What are the basic differences between the In-Network and Out-of-Network Plans?

_______________________________________________________________________________________

_______________________________________________________________________________________

_______________________________________________________________________________________

_______________________________________________________________________________________

_______________________________________________________________________________________

_______________________________________________________________________________________

_______________________________________________________________________________________

_______________________________________________________________________________________

_______________________________________________________________________________________



$ $ $ $ $ $



Professional Servicesa. Surgery, anesthesia, radiation therapy

in-hospital doctor visits, diagnosticX-ray and lab.

b. Office visits - including X-rays and labwork .

Mental, Emotional or FunctionalNervous Disorders & CounselingTreatment for Alcoholism

a. Inpatient hospital charges

b. Outpatient Professional Services

Smoking Cessation

Infusion Therapy: Administration ofdrugs and other substances in waysother than oral; such as chemotherapythrough a vein.

Up to $50 for pharmaceuticals and $50 per insured person for any smoking cessation program per lifetime.

80% 70%

All but a 70%$20.00

co-payment

All but a 70%$20.00

co-payment

80% 70%

All but a 70%$20.00

co-payment

80% 70%

75% 65%

All but a 65%$30.00

co-payment

All but a 65%$30.00

co-payment

75% 65%

All but a 65%$30.00

co-payment

75% 65%

70% 60%

All but a 60%$40.00

co-payment

All but a 60%$40.00

co-payment

70% 60%

All but a 60%$40.00

co-payment

70% 60%

In-Network: When you use Participating Providers, Metropolitan pays based on the negotiated rate.Out-Of-Network: When you use Non-Participating Providers, Metropolitan pays based on reasonable charges.

$20 $30 $40Benefit Co-Pay Plan Co-Pay Plan Co-Pay Plan

Preventive CareBabies/children through age 6:a. Office visit/examination related to

preventive care including lab workbilled by the attending physician onthe same date of service.

b. Immunization and lab work, notbilled with the office visit by theattending physician on the samedate of service.

Adults:a. Office visit/examination related to

services in (b.) for adults.

b. Routine pap smears, annualmammograms, and PSA for men.

In- Out-of- In- Out-of- In- Out-of-Network Network Network Network Network Network

Lifetime Maximum $5,000,000

Outpatient Medical Care 80% 70% 75% 65% 70% 60%

Physical/OccupationalTherapy/Medicine

Acupuncture/Acupressure

As much as $25 per visit, and as many as 12 visits per year. Additional visits may also be available through the Home Health Benefit if approved by Managed Care Service

Maximum Covered Expenses of:

$100 per day, and as much as $3000 per year(exception: Inpatient treatment of alcoholism is payable as any other medical condition)

As much as $25 per visit, and as many as 20 visits per year.

As much as $25 per visit, maximum of 12 visits per year

80% 70% 75% 65% 70% 60%



Inpatient Hospital Servicesa. Semi-Private Room and Board

Intensive Care & Related ExpensesDiagnostic Services (X-ray, lab

tests, EKGs, ECGs, etc.Non-emergency services & supplies

b. Medical Emergency(Pre-certification required on allplans)

Prescription Drugs

a. Generic drugs..............................

b. Brand name drugs......................

80% 70%less an

additional $500 penalty

80% 80%until

transferableto a

participatinghospital, then

70%

75% 65%less an

additional$500 penalty

75% 75%until

transferableto a


65%

70% 60%less an

additional$500 penalty

70% 70%until

transferableto a


60%

$20 $30 $40Benefit Co-Pay Plan Co-Pay Plan Co-Pay Plan

In- Out-of- In- Out-of- In- Out-of-Network Network Network Network Network Network

Durable Medical Equipment 80% 70% 75% 65% 70% 60%

Ambulatory Surgical Center 80% 70% 75% 65% 70% 60%

Ambulance 80% 70% 75% 65% 70% 60%Must be medically necessary Maximum Covered Expenses of $750 per trip (air or ground)

Home Health Care 80% 70% 75% 65% 70% 60%of Covered Expenses, as many as 60 visits per year

Skilled Nursing Facilities 80% 70% 75% 65% 70% 60%Maximum Covered Expenses of $400 per day, as many as 100 days per year

Hospice 80% 70% 75% 65% 70% 60%$10,000 lifetime maximum

For Each Prescription Filled

$10 $15 $15 $20 $20 $25co-payment co-payment co-payment co-payment co-payment co-payment

$20 $30 $25 $35 $30 $40co-payment co-payment co-payment co-payment co-payment co-payment

Note: Pharmacy co-payments do not apply to your out-of-pocket maximum

Out-of-Pocket Maximums

$20 Co-Pay PlanFirst Level - Until you incur $2000 out-of-pocket per year................... 80% ............................ 70%Second Level- Once you incur $2000 out-of-pocket per year................. 100% ............................ 70%Third Level - Once you incur $7000 out-of-pocket per year .................. 100% ............................ 100%



When you use In-Network

Providers we pay

When you use Out-of-Network

Providers we pay


You've been hired by the Department of Labor to design a poster to help first time employeesunderstand the various benefits that are available to them from their employers and from thegovernment. The poster should include a catchy phrase and illustrate the benefits.

My Paycheck Know Your Benefits 26


You've beenfired!

Go back to START

Each player begins at START and tries to be the first to reach FinancialSecurity. To begin, a player should draw a number card and move the numberof spaces shown.

You just got araise!

Move ahead2 spaces.

You've beenlaid off!

Go back8 spaces.

If a player lands on a blank space, a trivia card should be drawn and read bya different player. If the question is answered correctly, the player remains onthe square.

Everyone istaking a cut in

pay.Go back 2 spaces.

You wrote anovel that didn't sell.

Go back 7 spaces.

You've found ahigher paying

job! Move ahead

4 spaces.

If the question is answered incorrectly, the player must go back to the positionat the beginning of the turn.

Your businesswent

bankrupt!Go back to

START

You received asales bonus!

Move ahead2 spaces.

You've beendemoted.

Go back 3spaces.

If the player lands on a square with a penalty or bonus, follow the directions onthe square and do not draw a trivia card.

You've beenhired!

Move ahead3 spaces

You didn't getthe job!

Go back to theStart

START

FinancialSecurity

My Paycheck Payday Trivia 27


1 1 1 1 1

2 2 2 2 2

3 3 3 3 3

4 4 4 4 4



What paycheck termmeans the amount earned

before deductions?

Gross Pay What percentage of thesocial security tax is paid

by an employee?

50%What two paycheck termsmean the amount earned

after deductions?

Net Pay Take Home Pay A common pay period

is bimonthly.

FalseWhat paycheck term

means tax deductions?

WithholdingIn general, social securitytax rates have increased

over the years.

TrueName the three most

common tax deductions.

Federal Income TaxState Income Tax

Social Security Self-employed workerspay 100% of their social

security tax.

TrueWhat lunar term meansholding more than one

job?

MoonlightingHealth insurance and

paid vacation are examples of these.

Fringe BenefitsWhat color collar is used

to describe workers inphysical jobs?

Blue

What color collar is usedto describe workers in

non-physical jobs?

White

What is the most valuablefringe benefit for most

workers?

Health Insurance

Auto insurance is a common fringe benefit.

False

Sick days are a commonfringe benefit.

True

Life insurance is a common fringe benefit.

True

Homeowner's insurance isa common fringe benefit.

False

A retirement plan is acommon fringe benefit.

True

A common pay period isbiweekly.

True

A common pay period ismonthly.

True



What paycheck termmeans working more than

40 hours?

Overtime What term means changing job locations?

TransferredWhat term means beingmoved to a higher level

job?

Promoted What part of social security is now shown as

a separate deduction?

MedicareWhat term means beingmoved to a lower level

job?

DemotedWhat two documents tellan employer about your

work history?

ResumeApplication

What form tellsemployees how much

they've earned during theyear?

W2 A former employer maywrite this for you.

Letter of RecommendationWhat form tells an

employer how much tax towithhold?

W4How many income tax

deductions do most workers have?

TwoWhat term means losing

your job for economic reasons?

Laid Off

What term means losingyour job for

incompetence?

Fired

What term means beingwithout a job?

Unemployed

What term means moneyshifted from the employed

to the unemployed?

Transfer Payments

What transfer payment isreceived by laid off

workers?

UnemploymentCompensation

What transfer payment isreceived by injured

workers?

Workmen'sCompensation

What paycheck term isillustrated by $30,000 a

year?

Salary

What paycheck term isillustrated by $10 an

hour?

Hourly Wage

What income term forwriters is illustrated by

10% of sales?

Royalties

What income term forsalesmen is illustrated by

20% of sales?

Commissions



What income term is illustrated by $1 per item

produced?

Piece Rate What income term meansan increase in the value of

an investment?

Capital GainWhat income term is illustrated by a 20%

gratuity?

Tips What income term meansa decrease in the value of

an investment?

Capital LossThis type of extra incomeis given by employers at

Christmas?

Bonus What income term meansa share of corporate

profits?

DividendsWhat term is slang forfringe benefits?

Perks

What income term meanspayment for the use of

property?

RentStock options are a

common fringe benefit incorporations.

TrueWhat income term meanspayment for professional

services?

FeesMany retired workers

receive this type of incomefrom former employers.

Pensions

What income term meansmoney earned from

savings?

Interest

What term means theincome of a self employed

businessman?

Profit

Since 2000 theunemployment rate has

never been more than 5%.

False

The minimum wage iscurrently $4.00 an hour.

False

Most part time workersdo not receive these.

Fringe Benefits

Promotions are a commonfringe benefit.

False

Gross pay minus deductions equals net pay.

True

Gross pay minus deductions equals take

home pay.

True

What term means thepurchasing power of your

money income?

Real Income



Excise tax is a commonpaycheck deduction.

FalseSome workers have

deductions for three typesof income tax.

TrueHow many hours are inthe standard work week?

40Federal income tax isalways an employee's

largest deduction.

FalseBy what date must youfile your federal income

tax return?

April 15 It is against the law to pay an employee in

cash.

FalseSelf employed workers donot pay social security.

False

A person could have botha salary and an hourly

wage.

TrueThe initials F.I.C.A. onyour paycheck refer to

social security.

TrueAll employees must retire

at age 65.

FalseUnemployment

compensation tax isdeducted from everyemployee's paycheck.

False

Workmen'scompensation tax isdeducted from everyemployee's paycheck.

False

Social security is not paidby part time workers.

False

What term means beingon the job the longest?

Seniority

In what form of money aremost workers paid?

Check

What income term meansan increase in wages?

A Raise

There is a direct relationship between

income and education.

True

What paycheck deductionincludes public retirement

benefits?

Social Security

A common pay period isweekly.

True

What income term meansemployees receiving part

of company earnings?

Profit Sharing


My Paycheck Assessment - True or False 1


Gross pay minus deductions equals take home pay . . . . . . . . . . . . . . . . . . . . . . . . .

The three most common pay periods are biweekly, monthly, and bimonthly . . . . .

Employees pay 50% of their social security and medicare tax.

Life insurance, health insurance, and property insurance are common fringebenefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Federal income tax is always an employee's largest deduction . . . . . . . . . . . . . . . .

The amount a person is paid is based on the importance of the job to society . . .

Paycheck tax deductions are known as withholding . . . . . . . . . . . . . . . . . . . . . . . ..

The standard work week is 40 hours . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Self-employed workers pay no social security tax . . . . . . . . . . . . . . . . . . . . . . . . . .

Salaries and wages for the same job vary from location to location . . . . . . . . . . . .

Paid vacation is a common fringe benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Your annual wage is your gross pay. Your real wage is your net pay . . . . . . . . . . .

The W4 form tells employees what they've earned during the year . . . . . . . . . . . .

Commissions are a percentage of sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

All workers are paid overtime for working more than 40 hours a week . . . . . . . .

Paid sick leave is a common fringe benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The federal minimum wage is $8.00 an hour . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..

An author could earn royalties, a businessman could earn profits, and a waitercould earn wages and tips . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Health insurance is a very valuable fringe benefits . . . . . . . . . . . . . . . . . . . . . . . .

A 401(k) is a type of retirement plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

13.

14.

15.

16.

17.

18.

19.

20.

________

________

________

________

________

________

________

________

________

________

________

________

________

________

________

________

________

________

________

________

Decide if each statement is True or False.

My Paycheck Assessment - Math Problems 2


William Lawrence is a machine operator. His hourly wage is $14.50. He'spaid time and a half when he works over 40 hours a week. During a twoweek pay period he worked 46 hours the first week and 48 hours the secondweek. Compute each of the following:

Gross Pay ......................................................................................................

Federal Income Tax Deduction of 9.80% ..................................................

Social Security Tax Deduction of 6.20% ...................................................

Medicare Tax Deduction of 1.45% .............................................................

State Income Tax Deduction of 3.50% .......................................................

Union Dues of 1.00% ..................................................................................

Total Deductions .........................................................................................

Net Pay .........................................................................................................

Show Your Work Below:

1.

Solve each of the following problems. Round answers to the nearest cent or 1/10th percent.

$ _______________

$ _______________

$ _______________

$ _______________

$ _______________

$ _______________

$ _______________

$ _______________

My Paycheck Assessment - Math Problems 3


Jerry Krammer was paid $15.24 a hour. He worked 40 hours each weekduring the year. The cost of living index where he lived was 103.2.

What was his annual income from his wages? ...............................................Round your answers to the nearest dollar.

What was his annual real income? ..................................................................Round your answers to the nearest dollar.

Joan's fee-for-service health insurance plan pays 80% of the first $5,000 ofcovered expenses and 100% of the remaining covered expenses after she paysa $250 deductible. If she received covered medical expenses of $5,840, howmuch would she and her health care plan have to pay?

Joan: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Insurance Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Eric's preferred provider health care plan requires only a $15 copaymentfor an office visit when a network doctor is used and pays only 60% of thecost of an office visit when a out-of-network doctor is used. If Eric had four,$65 office visits during the year, how much would he save by using anetwork doctor? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2.

3.

4.

Solve each of the following problems. Round answers to the nearest cent or 1/10th percent.

$ _______________

$ _______________

$ _______________

$ _______________

$ _______________

Documents

My Paycheck How Much You’ll Make 1 - …fhsbusinessmeeting.wikispaces.com/file/view/My Paycheck - Student...Although there are rewards other than money that we receive from our jobs,