Aim: How do employers distribute employee income? Do Now: Describe the difference between a deficit and a surplus.

New Form of Payment?

Employment Information What is the difference between salary and wages? Which would you rather have? What does it mean to work off the books? Advantages? Disadvantages?

Three methods employers may use to Paying Employees Three methods employers may use to pay employees: Paycheck- Most common method of payment Employee is responsible for handling the paycheck Immediately see payroll stub and deductions Two choices Deposit it in the bank Get it cashed at a check cashing location

Paying Employees continued Direct Deposit- Employers directly deposit employee’s paycheck into the authorized employee’s bank account Most secure because there is no direct handling of the check Employee knows exactly when paycheck will be deposited and available Advantages? Disadvantages?

Paying Employees continued 3. Payroll Card- A payroll card electronically carries the balance of the employee’s net pay Funds are directly deposited by an employer into an account at a financial institution that is linked to the payroll card Parties involved: Employer Employee Financial institution Use the payroll card for ATM withdrawals or to make purchases