keeping your job and employee pay benefits

Keeping Your Joband

Employee Pay Benefits

Becoming Employed

W-4 Form Employee’s Withholding Allowance

Certificate› Determines the amount of money your

employer will deduct from your check for income taxes

› Must declare allowances or persons claimed The more claimed—less taxes are taken from

check

Social Security Your personal identification number

› Be careful to whom you give it to As a tax

› Both employee and employer contribute› The amount contributed throughout

lifetime will be returned at retirement.

W-2 Form Wage and Tax Statement

› Shows income earned during the year and all withheld amounts

› Employer must provide copy to employee by January 31

› Used to figure income taxes

Employment Laws

Social Security Act Enacted to provide federal aid for

elderly and disabled. FICA = Social Security Tax

FYI….in 2010, 54 million people were receiving Social Security benefits, while 157 million people were paying into the fund; of those receiving benefits, 44 million were receiving retirement benefits and 10 million disability benefits

Unemployment Compensation

Provides benefits to workers who lose their jobs though no fault of their own.

Have to be actively looking for a job Can receive compensation for 26

consecutive weeks.

Fair Labor Standards Act Aka Wage and Hour Act 1938 Established minimum wage Federal Minimum wage – State Minimum wage -

FYI…. In 1966, the minimum wage was $1.60.

Gross Pay Total or agreed upon rate of pay before

deductions

Hourly Wages When employee is paid for every hour

worked

Overtime Full time hourly workers cannot work

over 40 hours a week without being paid overtime› Overtime rate is normally 1 1/2 times

regular rate of pay

Monthly Salary Paid set amount per month Doesn’t matter how many hours

worked No overtime paid unless agreed upon

Annual Pay Set pay for year divided into equal

amounts Overtime usually not paid

Pay Periods Monthly – once a month

› 12 pay periods Biweekly – every two weeks

› 26 pay periods Semiweekly – two times a month

› 24 pay periods Weekly – every week

› 52 pay periods Which is best???

Deductions Subtracted from gross pay Examples of required deductions

› Social security tax› Federal and state income tax

Examples of optional deductions› Insurance --Retirement› Savings accounts --loan

payments› Charity

Net Pay Also known as Take Home Pay Gross pay minus deductions

Employee Withholding Sheet

Required by law that explanation of pay computations be provided with each paycheck.

ie..check stub

Benefits and Incentives Insurance Profit sharing Paid vacations Paid holidays Sick pay Bonuses Savings plans Travel expenses

Employee Services› Discounts› Rec programs› Tuition

reimbursement› Free parking

Family Medical Leave Act 1993 Employers with 50 or more employees

must give up to 12 weeks unpaid leave per year for:› Birth or adoption› Care for spouse, parent, child with illness› Own illness

Labor Unions Main function is to recruit new

members Not as strong as they have been in the

past

Collective Bargaining Process of negotiating terms of

employment for union members

Strike When union members refuse to work

until agreement is reached

Professional Organization Associations for professionals that

establish professional standards Conferences offered Keep members up to date