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Facts

Facts. In 2009, the average worker earned $43,460 . Employed persons work an average of 7.5 hours on the days they work. In 2009, 72% of employed workers worked over 35 hours per week The FBI estimates that over four million paper paychecks are stolen annually.

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Facts

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  1. Facts • In 2009, the average worker earned $43,460. • Employed persons work an average of 7.5 hours on the days they work. • In 2009, 72% of employed workers worked over 35 hours per week • The FBI estimates that over four million paper paychecks are stolen annually. • Almost 31% of an individual’s paycheck is deducted.

  2. Paycheck Essentials Financial Literacy

  3. Job Offers • They have offered you the job! • So has someone else. • No what? How do you determine which offer is better?

  4. Comparing Job Offers • Remember the two job offers we looked at last week? • What were some of the things we looked at? • Here are some other things to consider:

  5. The Hidden Costs of Working • How much is the job going to cost you? • Clothes, Equipment • Transportation • Child Care • Food

  6. In The Beginning • So you have decided - You got the job! • Time to get started • So many more decisions to make…

  7. Before the first check • Federal Forms • W-4 • I-9 • How to receive paycheck (if options are available) • Insurance • Retirement

  8. Form W-4 Employee’s Withholding Allowance Certificate • Determines what percentage of an employee’s pay will be withheld for income taxes • See example of form on page 159

  9. Taxes Charges imposed on citizens by local, state, and federal governments Purpose – Provide public goods and services How – Income tax, Sales tax, Property tax – Largest portion come from income

  10. Income Taxes • Employer is required to take income taxes directly out of an employee’s paycheck • Both Federal and State • Amount determined by information on W-4 • Allowances • Dependent – a person who relies on the taxpayer for financial support

  11. Form I-9 Employment Eligibility Verification Form • Must provide documentation which establishes identity and employment eligibility • Documentation • Driver’s License • Passport • Social Security Card • Birth Certificate

  12. How to receive paycheck Employer may offer options that include: • Paper paycheck • Direct deposit • Payroll card

  13. How to receive paycheck

  14. Pay Periods When can you expect to receive your first check? Pay Period – the length of time for which the employee’s wages are calculatedPay Periods may be weekly, bi-weekly, twice a month, monthly.

  15. Reading A Paycheck Stub • Example on page 158 • Personal information • Check date • Pay period • Gross pay • Deductions • Net Income - Take Home

  16. Paycheck Stub • Gross Income • Amount earned before any withholding • Income Tax • Federal and State withholding • FICA – Federal Insurance Contribution Act • Social Security and Medicare • Other Optional • Medical insurance premiums • Retirement plans • Year-to-Date Figures Net Income

  17. Summary • Hidden Costs Of Working • Comparing Job Offers • Form W-4 • Form I-9 • Paycheck Options • Pay Periods • Withholding • Reading Paycheck Stubs

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