unit 2 chapters 6, 8 & 9. chapter 7 is taxes cover close to tax time 6, 8 & 9 will have...
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Unit 2Unit 2
Chapters 6, 8 & 9Chapters 6, 8 & 9
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Chapter 7 is taxesChapter 7 is taxes Cover close to tax timeCover close to tax time 6, 8 & 9 will have more terms6, 8 & 9 will have more terms Will be responsible for these termsWill be responsible for these terms
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Chapter 6Chapter 6
Employee Pay and benefitsEmployee Pay and benefits
What is employee pay?What is employee pay? What are different ways you can be What are different ways you can be
paid?paid?
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Ways To Get PaidWays To Get Paid
Hourly WagesHourly Wages OvertimeOvertime Shift DifferentialShift Differential SalarySalary
– Bi weeklyBi weekly– MonthlyMonthly– AnnuallyAnnually
Piece workPiece work BonusBonus Merit PayMerit Pay Barter Barter CommissionCommission
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Calculate Your PayCalculate Your Pay
You work in a department store. You earn You work in a department store. You earn $7.50 per hour plus 1% of all sales you $7.50 per hour plus 1% of all sales you make each pay period. You worked 80 make each pay period. You worked 80 hours and sold $200 per hour. What was hours and sold $200 per hour. What was your GROSS earnings?your GROSS earnings?– $200 sales/hr X 80 hours = $16,000$200 sales/hr X 80 hours = $16,000– $16,000 in sales X .01 (1%) = $160$16,000 in sales X .01 (1%) = $160– 80 hours X $7.50 = $60080 hours X $7.50 = $600
– Total pay = $160 + $600 = $760Total pay = $160 + $600 = $760– Annual pay = $720 X 50 = $37,500Annual pay = $720 X 50 = $37,500
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Calculate Your PayCalculate Your Pay Now you calculateNow you calculate You work selling by phone. You earn You work selling by phone. You earn
$3.50 per hour plus 5% of all sales you $3.50 per hour plus 5% of all sales you make each pay period. You worked 80 make each pay period. You worked 80 hours and sold $100 per hour. What was hours and sold $100 per hour. What was your GROSS earnings?your GROSS earnings?– $100 sales/hr X 80 hours = $8,000$100 sales/hr X 80 hours = $8,000– $8,000 in sales X .05 (5%) = $400$8,000 in sales X .05 (5%) = $400– 80 hours X $3.50 = $28080 hours X $3.50 = $280
– Total pay = $280 + $400 = $680Total pay = $280 + $400 = $680– Annual pay = $680 X 50 = $34,000Annual pay = $680 X 50 = $34,000
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Calculate Your PayCalculate Your Pay
You work selling a product. Your salary is You work selling a product. Your salary is $48,000 per year. You make a $48,000 per year. You make a commission of 2% of all sales. You sell commission of 2% of all sales. You sell about $2,000,000 per year. What was about $2,000,000 per year. What was your GROSS earnings for the year?your GROSS earnings for the year?– $2,000,000 in sales X .02 (2%) = $40,000$2,000,000 in sales X .02 (2%) = $40,000– Annual salary = $48,000Annual salary = $48,000
– Annual pay = $40,000 + $48,000 = $88,000Annual pay = $40,000 + $48,000 = $88,000– What is your bi weekly pay from your salary?What is your bi weekly pay from your salary?– What is your monthly commission? What is your monthly commission?
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Calculate Your PayCalculate Your Pay
– What is your bi weekly pay from your What is your bi weekly pay from your salary?salary?
– What is your monthly commission?What is your monthly commission?
– Bi weekly $48,000 ÷ 26 = $1,846.15Bi weekly $48,000 ÷ 26 = $1,846.15
– Monthly $48,000 ÷ 12 = $4,000 Monthly $48,000 ÷ 12 = $4,000
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Benefits & IncentivesBenefits & Incentives
Profit sharingProfit sharing Stock OptionsStock Options Paid VacationPaid Vacation HolidaysHolidays Employee ServicesEmployee Services Sick PaySick Pay Leave of AbsenceLeave of Absence FlextimeFlextime
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Terms Chapter 6Terms Chapter 6
DeductionsDeductions Employee ServicesEmployee Services Fringe benefitsFringe benefits Gross payGross pay Net pay Net pay Collective BargainingCollective Bargaining
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TermsTerms
SenioritySeniority StrikeStrike VestedVested
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Benefits and IncentivesBenefits and Incentives
InsuranceInsurance– HealthHealth– LifeLife– DentalDental– VisionVision
Stock OptionsStock Options Pension Pension Retirement Savings PlansRetirement Savings Plans Travel ExpensesTravel Expenses
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T/P/ST/P/S
What are some items on a pay check What are some items on a pay check you need to know about?you need to know about?
What is FICAWhat is FICA What is Medicare/MedicaidWhat is Medicare/Medicaid
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Gross PayGross Pay DeductionsDeductions Net payNet pay
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Income & The W-4Income & The W-4
Read p 17 to 18 in NEFE bookRead p 17 to 18 in NEFE book
Be able to answer all terms Be able to answer all terms highlighted in bluehighlighted in blue
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The W - 4 FormThe W - 4 Form
Go to the IRS Web siteGo to the IRS Web site Look at a W-4 formLook at a W-4 form What is the purpose of the W-4?What is the purpose of the W-4?
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The standard deduction for 2010 is The standard deduction for 2010 is – $5,700$5,700
If you make less, no fed taxesIf you make less, no fed taxes More, pay some federal taxesMore, pay some federal taxes
Decision – get $ each payDecision – get $ each pay– or as a bigger refundor as a bigger refund
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Paycheck MistakesPaycheck Mistakes
Most occur when payroll is done in Most occur when payroll is done in househouse– Not by a payroll company like ADTNot by a payroll company like ADT
Common MistakesCommon Mistakes– Incorrect hours creditedIncorrect hours credited– Overtime payOvertime pay– Wrong taxesWrong taxes
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TaxesTaxes
Name the payroll taxesName the payroll taxes– Federal income taxFederal income tax– State income taxState income tax– City or local income taxCity or local income tax– FICAFICA– Medicare/medicaidMedicare/medicaid– UI/DIUI/DI
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Go to Go to www.irs.gov In the box to the right, type in In the box to the right, type in tax tax
tablestables Go to the first entry on list and clickGo to the first entry on list and click Filling out a W-4 form impacts Filling out a W-4 form impacts
deductionsdeductions
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Other DeductionsOther Deductions
RetirementRetirement– 401K401K– 403B403B
MedicalMedical– StandardStandard– DentalDental– VisionVision– Life InsuranceLife Insurance
Union DuesUnion Dues
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The Pay StubThe Pay Stub
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TermsTerms
Incentive payIncentive pay Job rotationJob rotation Job sharingJob sharing LobbyingLobbying Professional organizationProfessional organization
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Terms Chapter 8Terms Chapter 8
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BudgetBudget
Budget activityBudget activity
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NEFE BookNEFE Book
Read pgs 33 to 38Read pgs 33 to 38 Using the budget worksheet on my Using the budget worksheet on my
web site, answer the questionsweb site, answer the questions
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TermsTerms
AssetsAssets BudgetBudget ContractContract CosignerCosigner Disposable IncomeDisposable Income Financial planFinancial plan
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TermsTerms
Fixed expensesFixed expenses LiabilitiesLiabilities Variable ExpenseVariable Expense Negotiable instrumentNegotiable instrument Mutual assentMutual assent