personal finance: module 1 lesson 3 determining your destiny
Post on 01-Jan-2016
217 Views
Preview:
TRANSCRIPT
Personal Finance: Module 1 Lesson 3
Determining Your Destiny
Determining Your Destiny • Slide 2
What is employee compensation?
It is the total amount of pay provided to an employee
in exchange for services performed.
Employees can be paid in two ways:
Direct (monetary) Indirect (non-monetary)
Video: Overview of Employment Compensation
Understanding Employee Compensation
Types of monetary compensation
Determining Your Destiny • Slide 3
Salary
Wages
Overtime
Commission
Tips
Bonuses
Entrepreneurship
Salary, wages, and overtime
Salary – a fixed amount paid each pay period no matter
how many hours were actually worked
Wages – usually received as an hourly, daily or weekly rate
of pay; fluctuates based on the actual amount of time the
employee worked during the pay period
Overtime – pay for hours worked over 40 hours in a week
paid at the rate of at least one and one-half the employee’s
regular rate of pay
Determining Your Destiny • Slide 4
Commission, tips, and bonuses Commission – a common way to
pay sales people. Usually a
percentage of the total price of the
product or services sold during a pay
period
Tips – an extra amount a customer
pays to reward service workers for
providing quality service
Bonuses - an amount paid in
addition to regular pay to reward
good performance by the employee,
company, or both
Determining Your Destiny • Slide 5
Entrepreneurship (self employment)
Determining Your Destiny • Slide 6
A person works for him- or herself and owns
the business Self-employment
income, called profit,
is money left over
once all business
expenses are paid
Employee benefits
“
Determining Your Destiny • Slide 7
Indirect or non-monetary compensation provided to
employees (by their employer) in addition to wages,
salary and tipsCollege Grad
Evaluating Your Benefits Package
Basic types of employee benefits
Paid leave
Group insurance
Retirement plans
Educational
assistance program
Profit-sharing
and stock options
Determining Your Destiny • Slide 8
Types of paid leave
Determining Your Destiny • Slide 9
Holiday pay – worker is
paid for certain holidays
when the place of
employment is closed
Sick leave – worker is paid even though he or she
is not at work due to illness
Personal/annual leave – worker is paid
even though he or she is not at work because
of personal reasons
Group insurance
Determining Your Destiny • Slide 10
Group Health Insurance – employer-sponsored insurance
that helps provide protection against the costs of medical
services and may include dental and vision options.
Employment Benefits
Flexible Spending Accounts
Flexible Spending Accounts
(FSA) – money that is deducted
from an employee’s paycheck to
pay health care expenses not
covered by insurance
Group insurance
Determining Your Destiny • Slide 11
Group Life Insurance provides benefits to dependents
and/or others you name in the case of your death
Group disability insurance replaces lost wages or
income if you are unable to work
Short-term disability replaces a portion of income
for up to six months
Long-term disability
replaces a portion
of income for longer
than six months
Comparing employee benefits
Determining Your Destiny • Slide 12
WorksheetsHealth Insurance CostCompare Employee Benefits
Links and ActivitiesBenefits Wizard
Employer-sponsored plans help employees be better prepared
for a time when they are retired and no longer working.
401(k) Plans – employee chooses how much money to
deduct from each paycheck and how to invest it
Many employers will offer to match a portion of the
employee’s contribution!
Begin Providing for Your Future
Pension Plans – retirement accounts funded entirely by
the employer
Value varies depending on years worked, salary, etc.
Retirement plans
Determining Your Destiny • Slide 13
Educational assistance programAn employee benefit wherein some or all educational
expenses are funded by the employer
Policies are set by employer
May extend to family members
Determining Your Destiny • Slide 14
College access tip!Having part or all
of your education paid for
by an employer is a
valuable benefit!
Profit sharing and stock options
Profit-sharing – employees are paid a share of the company’s profit
Stock options – employees receive stock in the company at a discounted price
Determining Your Destiny • Slide 15
Step with care and great tact and remember that Life’s a Great Balancing Act.
Determining Your Destiny • Slide 16
Oh, the Places You’ll Go! by Dr. Seuss
“”
Work-life balance
Determining Your Destiny • Slide 17
We all deserve to be able to balance our careers with rewarding
personal lives!
Employees who feel they have a better work-life balance
tend to work 21% harder.
Find out as much as you can before
deciding if a career opportunity
is right for you:
o Flexible work schedule
o On-call or overtime
o Overnight travel
o Family emergencies
o Commute time
For this project, the PR/Award Number is V215W100015
and the Department of Education is the funding agency.
This information is provided for the reader's convenience. Tennessee and U.S. Department of
Education are not responsible for controlling or guaranteeing the accuracy, relevance, timeliness, or
completeness of this information. Further, the inclusion of information or Web site address does not
reflect the importance of the organization, nor is it intended to endorse any views expressed, or
products or services offered.
Financial Education for College Access and Success
Determining Your Destiny • Slide 18
top related