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
© Take Charge Today –August2013 – Getting Paid– Slide 3Funded 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
Types of Income
Earned• Wage/Hourly
• Salary
• Tip
• Commission
Unearned• Interest
• Dividends (cash and stock)
• Pension
***
2.3.9.G1
© Take Charge Today –August2013 – Getting Paid– Slide 4Funded 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?
2.3.9.G1
© Take Charge Today –August2013 – Getting Paid– Slide 5Funded 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
2.3.9.G1
© Take Charge Today –August2013 – Getting Paid– Slide 6Funded 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 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
© Take Charge Today –August2013 – Getting Paid– Slide 7Funded 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 taxes?
2.3.9.G1
© Take Charge Today –August2013 – Getting Paid– Slide 8Funded 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 disability
• 6.2%• Paid by each worker
and matched by employer
2.3.9.G1
© Take Charge Today –August2013 – Getting Paid– Slide 9Funded 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%• Paid by each worker
and matched by each employer
2.3.9.G1
© Take Charge Today –August2013 – Getting Paid– Slide 10Funded 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
***
2.3.9.G1
© Take Charge Today –August2013 – Getting Paid– Slide 11Funded 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
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
© Take Charge Today –August2013 – Getting Paid– Slide 12Funded 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
2.3.9.G1
© Take Charge Today –August2013 – Getting Paid– Slide 13Funded 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
2.3.9.G1
© Take Charge Today –August2013 – Getting Paid– Slide 14Funded 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
2.3.9.G1
© Take Charge Today –August2013 – Getting Paid– Slide 15Funded 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
2.3.9.G1
© Take Charge Today –August2013 – Getting Paid– Slide 16Funded 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
2.3.9.G1
© Take Charge Today –August2013 – Getting Paid– Slide 17Funded 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
2.3.9.G1
© Take Charge Today –August2013 – Getting Paid– Slide 18Funded 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
2.3.9.G1
© Take Charge Today –August2013 – Getting Paid– Slide 19Funded 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
2.3.9.G1
© Take Charge Today –August2013 – Getting Paid– Slide 20Funded 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: Critical Information
2.3.9.G1
© Take Charge Today –August2013 – Getting Paid– Slide 21Funded 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 3/12/2014
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
© Take Charge Today –August2013 – Getting Paid– Slide 22Funded 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 9/29/2014
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
© Take Charge Today –August2013 – Getting Paid– Slide 24Funded 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
Starting a New Job
Form W-4 • Employee’s Withholding Allowance Certificate • Determines the amount of money withheld for taxes
2.3.9.G1
© Take Charge Today –August2013 – Getting Paid– Slide 25Funded 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
2.3.9.G1
© Take Charge Today –August2013 – Getting Paid– Slide 26Funded 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
2.3.9.G1
© Take Charge Today –August2013 – Getting Paid– Slide 27Funded 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
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
© Take Charge Today –August2013 – Getting Paid– Slide 28Funded 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
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
© Take Charge Today –August2013 – Getting Paid– Slide 29Funded 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
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
© Take Charge Today –August2013 – Getting Paid– Slide 30Funded 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
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
© Take Charge Today –August2013 – Getting Paid– Slide 31Funded 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
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
© Take Charge Today –August2013 – Getting Paid– Slide 32Funded 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
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
© Take Charge Today –August2013 – Getting Paid– Slide 33Funded 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
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
© Take Charge Today –August2013 – Getting Paid– Slide 34Funded 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
Homework
• First page of “Getting Paid Math”
2.3.9.G1
© Take Charge Today –August2013 – Getting Paid– Slide 35Funded 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 3/17/2014
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
© Take Charge Today –August2013 – Getting Paid– Slide 36Funded 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 3/18/2014
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