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February

February. Today Last Class. The Places You will Go! Notes Worksheet. Getting Paid State Comparison Project. What are the two primary sources of employment?. Self-employed Paid and pay taxes differently. Employed by an employer.

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February

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  1. February Today Last Class The Places You will Go! Notes Worksheet • Getting Paid • State Comparison Project

  2. What are the two primary sources of employment? • Self-employed • Paid and pay taxes differently • Employed by an employer What sources of employment do your family members have?

  3. Salary vs. Hourly Would you rather be paid a salary or hourly wage?

  4. What methods do employers use to pay employees?

  5. Methods of Payment • Paper Paycheck • Access funds by cashing or depositing a check • Pros • Money is in your hands • Cons • You could lose the check • Direct deposit • Wages deposited directly to depository institution account • Pros • Money goes to the bank • Cons • You have less control until the money is in your account. • Payroll card • Functions similar to a debit card, except not linked to employee’s personal account • Pros • Wages electronically loaded each payday • Cons • Fees are common What method of payment would be best for you?

  6. Payroll deductions Mandatory Optional

  7. What are the five main types of taxes? Withheld from wages

  8. Why are income and payroll taxes deducted from wages? Helps manage tax liability on an ongoing basis (total tax bill) End of year – total tax liability due Beginning of year

  9. What are the mandatory income and payroll tax deductions?

  10. Federal Income Tax How do you benefit from paying federal income taxes? Largest required deduction

  11. What is a Form W-4? Determines the percentage pay that will be deducted for federal income taxes

  12. Form W-4 Allowances

  13. Allowances Individuals may change their Form W-4 at any time

  14. State Income Tax Does your state have state income tax?

  15. What is Social Security? • Income for: • Retirees • People with profound disability • Children who have lost a parent • 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

  16. 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

  17. What are optional payroll deductions? Employee will typically pay much less than privately purchasing that same benefit.

  18. How Employers Further Support Employees Both required at no cost to the employee

  19. How Employers Further Support Employees

  20. Assignment • Take the Review Quiz – You may use your Notes! • Once you finish, sign up for 2 states • State Tax and Wage Project • 5 Slides / 1 per State • Choose 2 – Everyone will do California, Texas, and New York • Information to Include • State Sales Tax Rate • State Income Tax Rate • Median Income for Residents • Minimum Wage • Must have State Name, Flag, Population, Capital and Largest City for each state.

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