Bell Ringer: May 1 Please take out a writing utensil and make sure you received the note guide for today.

Thinking about your future: So, you currently do or will have a job, what do you need to know about what benefits you are guaranteed and which ones you are not guaranteed? Do you know what everything means and are you informed about the choices you will need to make?

Benefit Basics: The law requires employers to provide employees with certain benefits. Give employees time off to vote, serve on a jury and perform military service. Comply with all workers' compensation requirements. Withhold FICA taxes from employees' paychecks and pay your own portion of FICA taxes, providing employees with retirement and disability benefits. Pay state and federal unemployment taxes, thus providing benefits for unemployed workers. Contribute to state short-term disability programs in states where such programs exist. Comply with the Federal Family and Medical Leave Act (FMLA).

They are not required to provide: Retirement plans Health plans (except in Hawaii) Dental or vision plans Life insurance plans Paid vacations, holidays or sick leave

In reality, however, most companies offer some or all of these benefits to stay competitive. Most employers provide paid holidays for New Year's, Memorial Day, Independence Day, Labor Day, Thanksgiving day and Christmas day. Many employers also either allow their employees to take time off without pay or let them use vacation days for religious holidays.

Guaranteed Benefits:   Workers' compensation, also known as workman’s' comp, is a state-mandated insurance program that provides compensation to employees who suffer job-related injuries and illnesses. Federal Insurance Contributions Act (FICA) tax is a United States federal payroll (or employment) tax imposed on both employees and employers to fund Social Security and Medicare—federal programs that provide benefits for retirees, the disabled, and children of deceased workers. Short-term disability benefits help to protect your paycheck and your standard of living if you become disabled. The benefits replace a portion of your salary if you're out of work due to a qualified illness or injury. Pregnancy also is covered as a disability.

Guaranteed Benefits: Unemployment benefits - In the United States unemployment benefits generally pay eligible workers up to $450 per week maximum. Benefits are generally paid by state governments, funded in large part by state and federal payroll taxes levied against employers, to workers who have become unemployed through no fault of their own.   The Family and Medical Leave Act (FMLA) provides certain employees with up to 12 weeks of unpaid, job-protected leave per year. It also requires that their group health benefits be maintained during the leave.

Retirement Plans (3 of the most common) An IRA is a tax-favored retirement account that lets you contribute a certain amount each year and invest your contributions tax deferred. That means you pay no taxes on money invested. With a regular IRA, you pay income taxes on the money when it's withdrawn at retirement. If you don't have a 401(k) retirement account at work, you should also be able to deduct IRA contributions on your annual income tax return. If you try to cash out early (usually before the age of 59 ½), you will most likely pay a 10 percent penalty fee and may be subject to federal, state and local income taxes.

Retirement Plans (3 of the most common) Roth IRA contributions are made after tax, but any money generated within the Roth is never taxed again. The best part: you can take withdraw contributions you've made to a Roth IRA before retirement age without penalties. If you are just starting out and think your income will grow, putting money in a Roth is a great place to invest extra cash—while giving your future self an amazing tax break.

Retirement Plans (3 of the most common) A 401(k) is a workplace retirement account, offered as an employee benefit. This account allows you to contribute a portion of your pre-tax paycheck in a tax-deferred investment account. One of the benefits of contributing pre-tax money is it lowers the amount of income your taxes are based on (If you earn $75,000 and contribute $10,000, you are taxed on a $65,000 income). Plus, in a 401(k), investment gains grow tax deferred until retirement. If you withdraw funds from the plan before retirement age, you could pay a 10 percent penalty and be subject to federal, and maybe even state and local income taxes. However, some employers do offer 401(k) loans. Many employers will match employee contributions to a 401(k), typically up to 6 percent. If you are not contributing up to the company match, you may be ignoring a significant employee benefit.

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Graph 2 Do I really need 1.9 million for my retirement? How many years will you live after age 65? 20? Die at 85. 25? Die at 90. 1.9 million/20 years = $___________ (minus taxes at 30% or 15%) $______ or $_______ 1.9 million/25 years = $___________ Retirement homes? Could be around $5,000 to $8,000 per month Medication? Could be around $200-$350 a month Clothes? Vacations? Surgeries? Graph 2

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Take out a piece of scratch paper, please! Let’s Review Try Not to Use Your Worksheet

Question 1: You have to be let off of work for Serving on a jury Serving your country ????

Question 2: Federal Family and Medical Leave Act (FMLA) provides workers with what?

Question 3: All states (except for Hawaii) do not have to offer their employers with what?

Question 4: Which 6 holidays do most employers give their employees time off for?

Question 5: If you are on unemployment, what is the maximum amount of money you could earn per week?

Question 6: What is one positive about an IRA? What is one negative?

Question 7: What is one positive about a ROTH IRA? What is one negative?

Question 8: What is one positive about a 401(K)? What is one negative?

Question 9: Pregnancy leave is covered under what type of disability plan?

Question 10: FICA is used to find Social Security and ________, which you will use when you reach retirement age.

Answer 1: You have to be let off of work for Serving on a jury Serving your country VOTING

Answer 2: up to 12 weeks of unpaid, job-protected leave per year. It also requires that their group health benefits be maintained during the leave.

Answer 3: Health insurance

Answer 4: New Year's, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day.

Answer 5: $450

Answer 6: Positive: You don’t have to pay taxes on money invested. It’s pre-taxed. Negative: You must pay taxes later when you use it. You get a penalty fee if you cash out early.

Answer 7: Positive: You can withdraw anytime without penalties. You don’t have to pay taxes on money when used later. Negative: It’s invested after taxes, so you pay taxes on it upfront.

Answer 8: Positive: Pre-tax investment, so you don’t pay taxes right away. Employers will match your contribution, usually up to 6% of income. Negative: Penalties of up to 10% if you try to cash out early.

Short-term Disability. Answer 9: Short-term Disability.

Answer 10: Medicare

Just in case you needed to see it another way using smaller amounts

Just in case you needed to see it another way using other amounts/ time frames

For terms used today as you Will have a quiz next week! Create Flashcards On Your Phone Or On Paper For terms used today as you Will have a quiz next week!