Personal Finance Employee Pay and Benefits The Future of the Workplace

I. Gross Pay, Deductions, & Net Pay A.Deductions: 1.FICA (SS and Medicare) – Federal Insurance Contributions Act a.Social Security taxes provide benefits for retired workers, the disabled, and the dependents of both. b.The Medicare tax is used to provide medical benefits for certain individuals when they reach age Federal Income Tax a.Used to provide for national programs such as defense, community development, and law enforcement. 3.State Income Tax a.Used for state programs such as welfare, education, highways 4.Health Insurance 5.401K a.An employer sponsored retirement program b.Allows a worker to save for retirement while deferring income taxesincome taxes

I. Gross Pay, Deductions, & Net Pay G.W-4 a.Filled out when you first start your job. b.Indicates number of deductions. c.0 = more taxes are taken out of check, larger refund d.1 or higher = less taxes taken out, smaller refund or possibly pay $ in H.W-2 a.What you receive from your employer at tax time b.Indicates what taxes were deducted from your check. I.1040 EZ a.Federal tax form used to file your taxes J.1099 INT a.Form that indicates interest earned on savings/investments K.Allowances a.Used in calculating the amount of income tax to withhold from your paycheck (W-4).

II. Benefits & Incentives (Generational Differences Part 1) (Generational Differences Part 1 A.Profit Sharing B.Paid Vacations & Holidays C.Employee Services – discounts D.Sick Pay E.Leave of Absence F.Insurance -Health-Life -Dental-Vision

II. Benefits & Incentives Cont. (Generational Differences Part 2)Generational Differences Part 2 G.Bonuses and Stock Options H.Pension & Savings Plans I.Travel Expenses

III. Labor Unions A.History – 1886 B.Function of Unions 1.Recruit new members 2.Engage in collective bargaining 1.Mediation – 3 rd party recommendation, not binding 2.Arbitration – 3 rd party decision, legally binding 3.Support political candidates 4.Support services

III. Labor Unions The Good ▫Unions raise wages of unionized workers ▫Unions reduce wage inequality  raise wages more for low- and middle-wage workers than for higher-wage workers  more for blue-collar than for white-collar workers  more for workers who do not have a college degree ▫Set a pay standard that non-union employers follow. ▫Unionized workers receive more generous health benefits than non-unionized workers. ▫Unionized workers receive better pension plans.

III. Labor Unions The Bad ▫Workplace closures were more likely among unionized plants than non-union plants in manufacturing ▫In the economy as a whole, non-union workplaces grew, whereas unionized workplaces shrank on average ▫Protects all workers…good or bad. The Debate Mercury Marine Benefits and the Union

IV. Know Your Rights “Employment At Will” ▫An at-will employee can be fired at any time, for any reason Taking Family and Medical Leave ▫Family and Medical Leave Act – 12 weeks  Companies with 50 or more employees.  Employee has worked for the employer for at least 12 months and at least 1,250 hours  eligible employee -12 workweeks of unpaid leave during any 12-month period for one or more of the following reasons: eligible employee  for the birth and care of the newborn child of the employee;  for placement with the employee of a son or daughter for adoption or foster care;  to care for an immediate family member (spouse, child, or parent) with a serious health condition; or  to take medical leave when the employee is unable to work because of a serious health condition

Rate Type: Old Rate: New- As of 7/24/09: Adult [Non-agriculture] $6.50 $7.25 Minor [Non-agriculture] $5.90 $7.25 Opportunity Employee $5.90 $5.90 Tipped Employee $2.33 $2.33 Tipped Opportunity Employee $2.13 $2.13 Adult [Agriculture] $5.15 $7.25 Minor [Agriculture] $4.25 $7.25 Wisconsin’s New Minimum Wage Law