Building Wealth Mr. Sullivan

 At midnight on April 15 th, 1987, over 7 million American children all vanished at the exact same moment. There was no public outcry and not one search crew was ever assembled. Not one body was ever recovered. What happened?

 The _________________ requires employees to complete a number of forms. If you are under the age of _____, some forms are required to obtain the documents you need to hold a job. Specific work forms required by all employees (no matter the age) include: government 16

 The information you supply on this form determines the amount of money that your employer should keep out of your ___________ pay for taxing purposes. The employer then must _________ this money to the government. gross pay

 On this form, you are asked to list the number of _________________ you have. Allowances are a number that _________________ the amount of tax withheld from your paycheck. The more allowances you have, the ____________ tax you have withheld. However, it is important to note that claiming more allowances doesn’t necessarily decrease the tax you eventually owe. allowances reduce less

 A family of four has two working parents.  The mom decides to claim “2” on her W-4 which means she is claiming herself and one of her children.  The dad also claims “2” on his W- 4 form which means that he is claiming himself and the other child. For example,

 At the end of the year, they shouldn’t have to pay much to the government or any at all, or it is possible that they may receive a small refund.

 In summary, they will be paying approximately the correct amount of tax throughout the year as they are claiming “4” total dependents on the family’s W-4 forms which is what the government suggests.

 If the same family had the mom claiming “3” and the dad claiming “4” on their respective W-4 forms, they would end up paying lots of money to the _______________ at tax time as very little tax was taken out of each paycheck throughout the year.  The choice is yours. IRS

 As a Holmen High School student living at home with your parents, you have three options on your W-4 form.  You can claim “____” which will mean paying more taxes each pay period and receiving a bigger refund at the end of the year. 0

 Another possibility is to claim “____” which will mean you will pay less in taxes each period but you will receive a smaller refund or possibly be forced to pay a small amount in to the IRS. 1

 Finally, as some of you will not make enough money during the year to actually have to file taxes, you can write “exempt” which means you do not have to pay federal income taxes.

 If you make less than…  $5,800 (if Mom and Dad claim you)  $9,500 (if you claim yourself)  You do not have to file taxes.

What “0” and “1” Mean  “0” Means that you are not reliant upon your income, and your parents probably support you. The Government feels like they may take out more money in taxes each month because you do not support yourself!

 “1” Means that you are reliant upon your income, and you probably support yourself.  The Government feels like they should not take so much money out of your paycheck each month so you may support yourself and pay your bills!

Special Note  In either case, the amount of taxes you owe is exactly the same!!!  Example- John owes $1,000 in taxes.  If John claims “0,” the Government may take out $3,000  If John claims “1,” the Government may take out only $900

 If John claims “0,” he is entitled to a $2,000 refund!  ($3,000 in taxes paid minus $1,000 in taxes owed!)  If John claims “1,” he must pay the government $100 at tax time!  ($900 in taxes paid minus $1,000 in taxes owed!)  Either way John still pays $1000 in taxes!

So which is better?  Typically not good to get a big refund at the end of the year!  Essentially loaned Uncle Sam your money interest free!  Typically not good to owe a lot at the end of the year!  Try to get as close as possible!

 Work with a partner of the opposite gender.  Answer these questions in paragraph form.  1. What is Social Security?  2. How does Social Security Operate?  3. What is the Debt Ceiling? What is going on in Washington right now with the Debt Ceiling?  4. What is the best way to fix Social Security?

 Social Security numbers must also be provided on your W-4 form. This number (which was first issued in ________) is your permanent work identification number.  Children at least one year old must have a SSN if they are to be claimed as _________________ on a tax return. This allows the government to withhold part of your paycheck for Social Security Tax as required by law dependents

 The law requires you to obtain a new Social Security card anytime your name changes. When a person changes their name due to ____________, they are required to obtain a new card with this changed information. marriage

 Federal and some state laws require minors (people under the age of legal adulthood) to obtain a work permit before they are allowed to work. The permit is signed by a parent or legal guardian for those under the age of _____ in Wisconsin, but 16 in Most states!!!

 This form, given to you by your ____________ after the start of the year, shows the amount of money you made the previous year, the amount of each tax that was withheld from your employer that year, and personal information including your name, address, and social security number. employer

 A copy of this form is also sent to the IRS for their records; therefore, the IRS is well aware of the money you made during the year. If you hold four jobs throughout the year, you should receive _____ W-2’s. 4

 The Department of __________________ is responsible for overseeing several important labor laws. These include: Establish a minimum wage of $________/hour (raised in 1997). Therefore, no state can pay less than the minimum wage amount. Some states have exceeded the minimum wage amount however. As of June 2007, the state of Wisconsin increased their minimum wage to $________ for adults and to $_________ for minors. As of July 24, 2009 the minimum wage was increased to $7.25. Provide _________________, disability, and retirement insurance benefits. Provide equal opportunities and prohibit _________________. Establish safe working conditions. Labor unemployment discrimination

 The Social Security Act was passed in This act established a national social insurance program that provides federal _________ for the elderly and for disabled workers.  In 1965, a __________________ provision was added which provided hospital and medical insurance protection for elderly retired workers and other qualified people.  Social Security and Medicare are deducted from your pay and sent to the _________________. aid Medicare US Treasury

Two Options  In 1935, the gov’t had the choice to setup Social Security in one of two ways: 1. Each person pay a certain amount of each paycheck into an account that they would receive upon retirement 2. Each person pay a certain amount of each paycheck into an account that goes to support the generation ahead of them!  Chose #2!!! Why?

 The Social Security Act also requires every state to have an unemployment insurance program. The insurance provides benefits to workers who _____________ their jobs through no fault of their own.  Keep in mind that people who are ________ from their jobs are not able to collect this compensation lose fired

. In Wisconsin, benefits are paid for a maximum of _____ weeks through the local state employment office as long as that employee has worked at least _____ months prior to being laid off. Wisconsin law allows a worker to collect $_______ a week plus 33 percent of wages in excess of $_______

 Workers’ compensation is an insurance program that pays __________________ to workers and their families for injury, illness, or death that occurs as a result of the job.  The ________________ is responsible for employee injuries and illnesses that are a result of employment, even though the employer may have done nothing to cause the injury or illness.  Employees may be required to pay for part of the ____________ to carry this insurance. benefits employer premium

 President Obama purposed raising the minimum wage to $10.10/hr.  Research the topic and answer the following question.  Come back with 5 pieces of evidence that support your position.  Opinions are NOT GOOD ENOUGH!

 Oregon Minimum Wage  Australia Minimum Wage  Minnesota Minimum Wage

 1. Would the increase in minimum wage lift people out of poverty or put a strain on business?  2. How does the poverty rate in America compare with that in Switzerland and Australia?  3. What will raising the minimum wage do to the unemployment rate?  4. What do experts suggest is a “Livable Wage?”

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 80% of Wal-Mart workers are on food stamps