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Maximizing Your Paycheck: Understanding Terminology and Savings Strategies

Learn about FICA, paycheck deductions, and money-saving tips. Explore employee benefits and grasp paycheck terminology to manage your finances effectively. Discover the importance of Social Security and retirement planning.

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Maximizing Your Paycheck: Understanding Terminology and Savings Strategies

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  1. Paycheck Vocabulary

  2. October 31, 2014 Entry task: What is FICA? How much is taken out of your paycheck for FICA? Target: Identify paycheck terminology and where your money goes.

  3. March 19, 2015 Entry task: Write down as many money saving strategies that you can think of (list at least five) Target: Identify paycheck terminologyand where your money goes.

  4. Jobs! Have you ever had a job before? If so, how did you get paid?

  5. Tip of the Day! Place a value on money. It doesn’t buy happiness, but it can certainly make you comfortable. Just understand what it’s worth.

  6. Quarter is almost Over! Last day to turn in missing work for the quarter is MARCH 24TH!!

  7. Portfolios • 2nd period • I only RECIEVED FIVE PORTFOLIOS! • 75% of you did not turn it in!!!!! • Get it done, turn it in, I need it!

  8. Guess what? IT’S PAYDAY!! Well not really.

  9. In your envelope you should have… $3,386.00

  10. FICA • Federal Insurance Contribution Act • Employees contribute 6.2% of wages to Social Security Fund. • You receive monthly social security checks based on your contribution when you reach retirement age

  11. Social Security

  12. Medicare • Funds country’s health care for elderly • 1.4% of pay

  13. FIT • Federal Income Tax • Goes to Federal Government • Based on marital status and deductions you supply

  14. SIT • State Income Tax • Same as federal only collected by the state • Washington has none

  15. Local • If county or city has one • Example: Chicago

  16. YTD • Year to Date • Total gross earnings starting January first

  17. Gross • Total amount you make before taxes are taken out

  18. Net • Total amount left after all taxes and deductions have been paid • Amount your check is made out for • Also called “take home” pay

  19. Pay Rate • Hourly wage listed on paycheck • How much you get paid per hour

  20. Pay Period • Work days you are paid for • Can be monthly, bi-monthly (2 week period), every 2 weeks, or weekly

  21. Pay Period Example • Rate: $ per hour $9 • Units: # of hours worked 50 • Gross pay: $450

  22. Other Employee Benefits • Cost employer between 33% and 50% of pay • Paid vacation • Paid sick days • Health/dental/eyecare insurance • Life insurance • Disability insurance

  23. Other Employee Benefits • Retirement benefits • Tax deferred retirement plan • Parental leave • Stock purchase plan • Fitness program • Discounts

  24. Social Security • Major source of income for most senior citizens • Image here

  25. Social Security • More than a retirement plan • 15% for survivor beneficiaries • 15% for disability beneficiaries • 70% for retirement beneficiaries

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