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Getting Paid Advanced Level

Getting Paid PowerPoint presentation 2.3...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

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Page 1: Getting Paid PowerPoint presentation 2.3...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

Getting PaidAdvanced Level

Page 2: Getting Paid PowerPoint presentation 2.3...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

2.3.9.G1

© Take Charge Today –August2013 – Getting Paid– Slide Funded 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

What are the two primary sources of employment?

What sources of employment do your family members have?

Page 3: Getting Paid PowerPoint presentation 2.3...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

2.3.9.G1

© Take Charge Today –August2013 – Getting Paid– Slide Funded 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

Salary vs. Hourly

Would you rather be paid a salary or hourly wage?

Page 4: Getting Paid PowerPoint presentation 2.3...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

2.3.9.G1

© Take Charge Today –August2013 – Getting Paid– Slide Funded 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

What methods do employers use to pay employees?

Page 5: Getting Paid PowerPoint presentation 2.3...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

2.3.9.G1

© Take Charge Today –August2013 – Getting Paid– Slide Funded 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

Paper Paycheck and Direct Deposit

Page 6: Getting Paid PowerPoint presentation 2.3...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

2.3.9.G1

© Take Charge Today –August2013 – Getting Paid– Slide Funded 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

Payroll Card

What method of payment would be best for you?

Page 7: Getting Paid PowerPoint presentation 2.3...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

2.3.9.G1

© Take Charge Today –August2013 – Getting Paid– Slide Funded 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

Payroll deductions

Mandatory Optional

Page 8: Getting Paid PowerPoint presentation 2.3...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

2.3.9.G1

© Take Charge Today –August2013 – Getting Paid– Slide Funded 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

What are the five main types of taxes?

Withheld from wages

Page 9: Getting Paid PowerPoint presentation 2.3...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

2.3.9.G1

© Take Charge Today –August2013 – Getting Paid– Slide Funded 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

Why are income and payroll taxes deducted from wages?

Helps manage tax liability on an ongoing basis (total tax bill)

Beginning of year

End of year –

total tax liability

due

Page 10: Getting Paid PowerPoint presentation 2.3...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

2.3.9.G1

© Take Charge Today –August2013 – Getting Paid– Slide Funded 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

What are the mandatory income and payroll tax deductions?

Page 11: Getting Paid PowerPoint presentation 2.3...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

2.3.9.G1

© Take Charge Today –August2013 – Getting Paid– Slide Funded 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

Federal Income Tax

Largest required deduction

How do you benefit from paying federal income

taxes?

Page 12: Getting Paid PowerPoint presentation 2.3...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

2.3.9.G1

© Take Charge Today –August2013 – Getting Paid– Slide Funded 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

What is a Form W-4?

Page 13: Getting Paid PowerPoint presentation 2.3...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

2.3.9.G1

© Take Charge Today –August2013 – Getting Paid– Slide Funded 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

Form W-4 Allowances

Page 14: Getting Paid PowerPoint presentation 2.3...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

2.3.9.G1

© Take Charge Today –August2013 – Getting Paid– Slide Funded 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

Allowances

Individuals may change their Form W-4 at any time

Page 15: Getting Paid PowerPoint presentation 2.3...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

2.3.9.G1

© Take Charge Today –August2013 – Getting Paid– Slide Funded 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

State Income Tax

Does your state have state income tax?

Page 16: Getting Paid PowerPoint presentation 2.3...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

2.3.9.G1

© Take Charge Today –August2013 – Getting Paid– Slide Funded 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

What is Social Security?

• Income for: o Retirees o People with profound

disability o Children who have

lost a parent o A person with

children who has experienced the death of a spouse

• 6.2% • Up to an annual

maximum • Paid by each worker

and matched by employer

Page 17: Getting Paid PowerPoint presentation 2.3...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

2.3.9.G1

© Take Charge Today –August2013 – Getting Paid– Slide Funded 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

What is Medicare?

• Helps pay for health care for individuals 65 and older

• 1.45% • No limit • Paid by each worker

and matched by each employer

Page 18: Getting Paid PowerPoint presentation 2.3...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

2.3.9.G1

© Take Charge Today –August2013 – Getting Paid– Slide Funded 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

What are optional payroll deductions?

Employee will typically pay much less than privately purchasing that

same benefit.

Page 19: Getting Paid PowerPoint presentation 2.3...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

2.3.9.G1

© Take Charge Today –August2013 – Getting Paid– Slide Funded 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

How Employers Further Support Employees

Both required at no cost to the employee

Page 20: Getting Paid PowerPoint presentation 2.3...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

2.3.9.G1

© Take Charge Today –August2013 – Getting Paid– Slide Funded 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

How Employers Further Support Employees

Page 21: Getting Paid PowerPoint presentation 2.3...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

2.3.9.G1

© Take Charge Today –August2013 – Getting Paid– Slide Funded 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

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

Page 22: Getting Paid PowerPoint presentation 2.3...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

2.3.9.G1

© Take Charge Today –August2013 – Getting Paid– Slide Funded 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

Pay StubEmployee 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

Page 23: Getting Paid PowerPoint presentation 2.3...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

2.3.9.G1

© Take Charge Today –August2013 – Getting Paid– Slide Funded 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

Pay StubEmployee 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

Why is the pay period different than the pay

date?

Page 24: Getting Paid PowerPoint presentation 2.3...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

2.3.9.G1

© Take Charge Today –August2013 – Getting Paid– Slide Funded 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

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

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

Page 25: Getting Paid PowerPoint presentation 2.3...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

2.3.9.G1

© Take Charge Today –August2013 – Getting Paid– Slide Funded 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

Pay StubEmployee 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

Page 26: Getting Paid PowerPoint presentation 2.3...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

2.3.9.G1

© Take Charge Today –August2013 – Getting Paid– Slide Funded 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

Pay Stub

What are examples of deductions?

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

Page 27: Getting Paid PowerPoint presentation 2.3...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

2.3.9.G1

© Take Charge Today –August2013 – Getting Paid– Slide Funded 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

Pay Stub

What contributions are included?

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

Page 28: Getting Paid PowerPoint presentation 2.3...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

2.3.9.G1

© Take Charge Today –August2013 – Getting Paid– Slide Funded 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

Pay StubEmployee 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

Page 29: Getting Paid PowerPoint presentation 2.3...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

2.3.9.G1

© Take Charge Today –August2013 – Getting Paid– Slide Funded 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

Can an employer pay employees cash?

Ensure employer is deducting income and payroll taxes from wages paid in cash

Consult a tax professional to determine if you should pay taxes on cash earned.

Page 30: Getting Paid PowerPoint presentation 2.3...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

2.3.9.G1

© Take Charge Today –August2013 – Getting Paid– Slide Funded 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

Summary