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INCOME

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Food for Thought:

“Find out what you like doing best and get someone to pay you for doing it.”

Katherine Whitehorn


Passion for Life: Ask yourself… What am I passionate about? What do I enjoy doing in my spare time? What am I good at? What is a dream job that I would love?


Difference between a job and a career: Job: You get up and go to work every day and then go

home You usually receive a wage, which is a set amount

you receive an hour. Some jobs eventually offer benefits like medical,

dental, sick days, personal days, retirement options, etc.

With a job, most tend to work strictly to make a living.


Difference between a job and a career: Cont…. Career: This is a chosen profession that you enjoy and want

to grow in. You also may receive benefits like medical, dental,

sick days, personal days and retirement options. With a career one tends to pursue a passion and

has a love for the profession. They work because they love what they do and not

to just make a living. A career often spills into the rest of your life while a

job tends to be one aspect of your life.


Career Facts:

The average person changes a career three times in their lifetime.

The average person changes jobs about ten times in a lifetime.

In the past people would work for companies their entire life;

Today it’s different, it is OK to switch jobs to get paid more or to pick up new skills.


Resumes and Job Applications: A resume is your first point of contact with a

potential employer. When you apply for a job, you tend to fill out

an application. When you apply for a career or high-paying

job you need to have a resume.


Writing a resume:

There is a whole industry related to the field of writing resumes. People pay anywhere from $50–$300 to write a resume that helps their client standout among the crowd of potential job seekers.

This is because many people that apply for one position often times have similar educational or career backgrounds.

With that it is important to master key concepts in a resume.


Job Interview:

An interview is a chance for an applicant to connect-the-dots’ between what they’ve done and what they can do for an employer.

It is important to verbally explain how one qualifies for a job, rather than just using a resume.


Interview Tips:

Research the company Arrive ahead of time or on time. Tidiness

reflects well on an applicant and the reverse holds true.

Focus on your strength Make sure your answers are relevant to the

job/career your are applying for. Share personal stories to connect with the

interviewer


Interview Tips: Cont….

Illustrate key points with stories or examples. Question: Do you work well in a team environment? Answer: I really learned to work well in a team

environment when I spent the summer in Africa building a school with people from all over the world.


Growing & Shrinking industries: What is a shrinking industry? What is a growing industry? Why is it important to know about shrinking

and growing industries?


Growth industries:

The Bureau of Labor Statistics says the top ten industries with the largest projected employment growth between now and 2018 are:

1. Management, Scientific, and technical consulting services.2. Services for the elderly and people with disabilities.3. Home health care services4. Computer systems design and services5. General Merchandise Stores6. Offices of Physicians7. Nursing care Facilities8. Employment Services9. Local Government (not including hospitals and education)10.Full Service Restaurants


Shrinking industries:

The bureau of Labor Statistics predicts the following industries have the largest wage and salary employment declines between now and 2018:

1. Department Stores2. Electronic Component Manufacturing3. Motor Vehicle Parts Manufacturing4. Postal Service5. Printing and related support activities6. Cut and Sew apparel manufacturing7. Newspaper Publishing8. Support Activities for Mining9. Gasoline Stations10.Wired Telecommunications Carriers


Interests, skills & Careers:

What are your five greatest interests in life? What are your five greatest skills? Which of the top thirty jobs/careers best

incorporate your skills and interests? What steps would you have to take to

transfer into a job/career in a growing field?


Taxes:

We pay taxes to help pay for government services in our country, state and city.

The government provides services like Public Safety (Police, Fire and Military), Government agencies, Public officials (mayors, state representatives, governors, the president, etc), and welfare assistance.


How do we contribute to the government ? Mostly through our paychecks in the form of

federal tax, state tax, social security and Medicare

The federal tax deductions vary depending on your income. Over 60% is used for Defense, Social Security

Income and Medicare


Terms you need to know:

Gross income: Amount of income prior to any tax or payroll

deductions.

Net income: Amount of income after any tax or payroll

deductions.


First federal statutes….

The first federal statutes imposing the legal obligation to pay a federal income tax were adopted by Congress in 1861 and 1862 to pay for the Civil War.

The 1862 law levied a 3% tax on incomes above $800, rising to 5% for incomes above $10,000.


Consequences of not paying Taxes: Tax levy Fines Jail time. Example: Wesley Snipes the actor was put in

jail for not paying his taxes.


Individual taxes:

Due on April 15th every year You can choose to do them yourself

Use software like TurboTax or online Use a tax advisor

If you do the taxes yourself, there� ’s a risk of missing out on deductions that lower taxes, risk penalties and other consequences.


Before you hire a tax advisor, Ask these questions.1. How many years have you been in your respective

field?

2. Are you knowledgeable in real estate matters?

3. What are your fees and how do you get paid?

4. What credentials do you have?

5. What professional boards do you belong to?

6. Have you ever had any disciplinary action?

7. What is your past experience?

8. What other services do you offer?


Paycheck:

Your paycheck stub will have several deductions: Tax deductions Medicare or SSI deductions, federal, and state

deductions. Payroll deductions e.g. retirement contributions.

Also: Net income, Gross income and YTD income are located.


W4 Form:

Each time you start a new job or need to change your tax deduction amount you will fill out a W4 form.

This form tells the government how many allowable deductions you have from taxes.

The more deductions you have, the lower the amount of taxes that are taken out of your paycheck.


Relevance of W4 form to Taxes It is important to calculate deductions

correctly, because if you have to many you may owe on your tax return or if you do not have enough you will receive a refund.

Sample of a W4 form: http://www.irs.gov/pub/irs-pdf/fw4.pdf

http://www.irs.gov/pub/irs-pdf/fw4.pdf


Types of Deductions:

Dependents Spouses Children People living with you 50% of the time.

Assets: Houses Rental Property


W2 Form:

W2 form is used to report wages paid to employees and the taxes withheld from them.

Employers must complete a Form W-2 for each employee to whom they pay a salary, wage, or other compensation as part of the employment relationship.

The form is also used to report FICA taxes to the Social Security Administration.


W2 form Deadline

An employer must mail out the Form W-2 to employees on or before January 31.

This deadline gives these taxpayers about 2½ months to prepare their returns before the April 15 income tax due date.

Sample of W2 form: http://www.irs.gov/pub/irs-pdf/fw2.pdf

http://www.irs.gov/pub/irs-pdf/fw2.pdf

income

Documents

job applications

dream job

career backgrounds

crowd of potential job

personal days

sick days

shrinking industry

personal stories