Pay and Taxes INVESTIGATE WHAT IMPACTS YOUR PAYCHECK AND PERSONAL TAXES ©2014 National Endowment for Financial Education | Lesson 3-3: Pay and Taxes.

Slides:

Advertisements

Similar presentations

© 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater Calculating Pay and Payroll Taxes: The Beginning of the.

Advertisements

Copyright © 2008 Delmar Learning. All rights reserved. Chapter 18 Financial Management of the Medical Practice.

NEXT Death and Taxes NET PAY NOTES What things are certain in life?

2.3.9.G1 February 12, 2014 Getting Paid State Comparison Project TodayLast Class The Places You will Go! Notes Worksheet.

NOTE: To change the image on this slide, select the picture and delete it. Then click the Pictures icon in the placeholder to insert your own image. Getting.

Preparing Payroll Records

Chapter 13 Preparing Payroll Records. Salary The money paid for employee services.

Chapter 12 Preparing Payroll Time Cards. 2 L 12-1 Paying Employees page 341 Money paid for employee services is called a salary. The period covered by.

Where Did My Paycheck Go?

 Log into Moodle and complete today’s Bell Ringer REMINDER: Today is the last day to turn in anything from this Marking Period › Be checking your grades!

Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.Glencoe Accounting Computing Gross Pay Calculating Gross Earnings Section 12.1 gross.

Section 2Payroll Deductions What You’ll Learn  Why deductions are calculated and reported.  How to calculate deductions required by the federal government.

Pay and Taxes INVESTIGATE WHAT IMPACTS YOUR PAYCHECK AND PERSONAL TAXES ©2012 National Endowment for Financial Education | Lesson 3-3: Pay and Taxes 1.

 5.1 Taxes and Your Paycheck.  Payroll Tax  Income Tax  Federal Insurance Contribution Act (FICA)  Withholding  Gross Income  Net Income  Form.

The Taxes You Pay. 1. Payroll Taxes -taxes based on the payroll of a business upon employee total earnings Paid to the govt. by you and your employer.

Earning Potential Amount of money you can receive based on: Amount of money you can receive based on: Level of education Level of education Career path.

G1 © Family Economics & Financial Education – Revised March 2008 – Paychecks and Taxes Unit – Understanding Your Paycheck Funded by a grant from.

Understanding Paychecks Where Does Your Money Go?.

Payroll Accounting Making Accounting Relevant Businesses issue payroll checks to their employees to compensate them for work performed. Making Accounting.

Chapter 12 Payroll Accounting

September 12, 2011 Objective: Students will examine optional payroll deductions.

NOTE: To change the image on this slide, select the picture and delete it. Then click the Pictures icon in the placeholder to insert your own image. Getting.

W-4 Form Used to determine the amount of income tax withheld from paychecks “Dependents” – Someone who lives with you – Provide for over 50% of their living.

Lesson 13: Net Pay Consumer Math: p When employees receive their paychecks, they should know that the check does not include their full earnings,

HOW MUCH OF YOUR INCOME WILL YOU KEEP? TAXES. PAYROLL TAXES The federal government receives the largest part of its revenue from payroll taxes. Placed.

Basic Goals of Payroll System  Prepare and issue payroll checks  Produce records for accounting purposes and reporting to government and management.

© 2014 Cengage Learning. All Rights Reserved. Learning Objectives © 2014 Cengage Learning. All Rights Reserved. LO3 Demonstrate the process for determining.

In your notebook…  Imagine you have taken a job at the mall earning $9.00 per hour. Over the course of two weeks you work a total of 20 hours. Estimate.

A plan for managing money during a given period of time Financial Roadmap.

PAYROLL ACCOUNTING Chapter 12. Using a Payroll System  Payroll – list of the employees and the payments due to each for a pay period  Pay Period – the.

Payroll Unit Terms Write down as many payroll terms or payroll taxes that you can think of in 2 minutes. Ready, Set, Go!

Taxes and Your Paycheck Career and Financial Management 2.

Tax Forms & Deductions. Net Income vs. Gross Income Gross income is the total amount a worker is paid before any required or voluntary deductions are.

NOTE: To change the image on this slide, select the picture and delete it. Then click the Pictures icon in the placeholder to insert your own image. Getting.

Understanding My Paycheck: The Basics TRiO Student Support Services Financial Literacy Spring 2016.

G1 © Family Economics & Financial Education – February 2006– Get Ready to Take Charge of Your Finances – Planet Paycheck – Slide 1 Funded by a grant.

Figuring Your Paycheck Life Choices _____. Introduction Main reason most of us work is to _____ Paychecks are used to pay for _____ Important to know.

Taxes. Taxes and Your Paycheck Payroll taxes Payroll taxes Based on earnings Based on earnings Paid to government by you and employer Paid to government.

Standard 1 VOCABULARY.  Career – a purposeful course of action or purpose in life that generally provides income  Earned Income –money received for.

Income Taxes for Individuals Calculated as a percent of your taxable income Taxable Income = Gross Pay - Pre-Tax Deductions (examples: retirement plan.

My Paycheck Chapter 3. Types of Income Earned Income – Money received from working. Six types: wages, tips, salaries, bonuses, commissions, royalties,

Getting Paid Advanced Level.

High School Financial Planning Program

Getting Paid Advanced Level.

Getting Paid Advanced Level.

Getting Paid Advanced Level.

Calculations Employees Working Abroad and Aliens in the U.S.; Federal Wage Hours Laws; Taxable and Nontaxable Compensation; Health, Accident, and Retirement.

Getting Paid Advanced Level.

Getting Paid Advanced Level.

© 2014 Cengage Learning. All Rights Reserved.

Getting Paid Advanced Level.

© 2014 Cengage Learning. All Rights Reserved.

Getting Paid Advanced Level.

© 2014 Cengage Learning. All Rights Reserved.

Payroll taxes and Paychecks Take Charge of your Finances

High School Financial Planning Program

Getting Paid Advanced Level.

Getting Paid Advanced Level.

Getting Paid Advanced Level.

Getting Paid Advanced Level.

Getting Paid Advanced Level.

Getting Paid Advanced Level.

Getting Paid Advanced Level.

Getting Paid Personal Finance.

Getting Paid Advanced Level.

Getting Paid Advanced Level.

Calculations Employees Working Abroad and Aliens in the U.S.; Federal Wage Hours Laws; Taxable and Nontaxable Compensation; Health, Accident, and Retirement.

High School Financial Planning Program

Presentation transcript:

Pay and Taxes INVESTIGATE WHAT IMPACTS YOUR PAYCHECK AND PERSONAL TAXES ©2014 National Endowment for Financial Education | Lesson 3-3: Pay and Taxes

Kevin’s Paycheck How much did Kevin earn? Last month he worked 60 hours at $6.50 an hour. How does this compare with what he actually takes home? ©2014 National Endowment for Financial Education | Lesson 3-3: Pay and Taxes 2 Calculating Income Kevin’s Monthly Pay Regular Pay +Tips =Gross Pay -Payroll Taxes$ 77 -Other Deductions =Net Pay Calculating Income Kevin’s Monthly Pay Regular Pay$ 390 +Tips$ 148 =Gross Pay$ 538 -Payroll Taxes$ 77 -Other Deductions$ 21 =Net Pay$ 440

Preview Today we will answer these questions: Why don’t I get all of my pay? How are payroll taxes calculated? Do I have any control over the amount of my net pay? Use what you learn today to maximize your pay options. ©2014 National Endowment for Financial Education | Lesson 3-3: Pay and Taxes 3

Income Taxes for Individuals Calculated as a percentage of your taxable income Taxable income = gross pay minus any pre-tax deductions (examples: retirement plan contributions, qualifying insurance premiums) Federal Income Tax State Income Tax Local Income Tax ©2014 National Endowment for Financial Education | Lesson 3-3: Pay and Taxes 4

Social Security & Medicare Contributions Calculated as a percentage of your total earned income. ©2014 National Endowment for Financial Education | Lesson 3-3: Pay and Taxes 5

Financial Decisions When Starting a Job Pay – Will your earnings fit into your spending plan? Paycheck – Do you want to automatically deposit your paycheck to savings or receive it in person? Employee Benefits – Which insurance plan best fits your situation? – How much will you contribute to a retirement or insurance savings program? – Do you have the automatic payroll deduction option for any of your regular expenses? Withholding Allowance – How much income tax is withheld from each paycheck? ©2014 National Endowment for Financial Education | Lesson 3-3: Pay and Taxes 6

W-4 Withholding Certificate ©2014 National Endowment for Financial Education | Lesson 3-3: Pay and Taxes 7

Youth Work Permits Abide by Child Labor Laws in Your State Required in some states before anyone under the age of 18 is allowed to work. (exceptions: agriculture or domestic service work) Employers must have a work permit on file minor allowed to begin work. Obtain a work permit from permit officer at school or job center. Present the following to get a permit: – Proof of age – Letter from the employer stating job duties and work schedule – Letter from the minor’s parent or guardian consenting to the employment – Minor’s Social Security card – Permit fee – Address of school that the minor attends Reasons to revoke work permit: – Minor does not attend school on a regular basis – Minor is working in a prohibited employment situation ©2014 National Endowment for Financial Education | Lesson 3-3: Pay and Taxes 8

What is Your Net Pay? Given: Receive an annual salary of $30,000 Paid twice a month (24 payments a year) Deduct income taxes and union dues What is your gross pay per paycheck? What is your net pay per paycheck? ©2014 National Endowment for Financial Education | Lesson 3-3: Pay and Taxes 9

Challenge Identify potential job options that match your work preferences. ©2014 National Endowment for Financial Education | Lesson 3-3: Pay and Taxes 10