Keeping Your Job and Employee Pay Benefits

1. Keeping Your JobandEmployee Pay Benefits

2. Becoming Employed

3. 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

5. 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.

6. 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

8. Employment Laws

9. 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

10. 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.

11. 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.

12. Gross Pay • Total or agreed upon rate of pay before deductions

13. Hourly Wages • When employee is paid for every hour worked

14. 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

15. Monthly Salary • Paid set amount per month • Doesn’t matter how many hours worked • No overtime paid unless agreed upon

16. Annual Pay • Set pay for year divided into equal amounts • Overtime usually not paid

17. 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???

18. 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

19. Net Pay • Also known as Take Home Pay • Gross pay minus deductions

20. Employee Withholding Sheet • Required by law that explanation of pay computations be provided with each paycheck. • ie..check stub

21. 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

22. 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

23. Labor Unions • Main function is to recruit new members • Not as strong as they have been in the past

24. Collective Bargaining • Process of negotiating terms of employment for union members

25. Strike • When union members refuse to work until agreement is reached

26. Professional Organization • Associations for professionals that establish professional standards • Conferences offered • Keep members up to date