1. Unit 2 Review
Learning Target: I will review unit 2 in preparation for an upcoming exam.

2. Applying for a job . . .
5 Step Process: Looking for Openings; Application/Cover Letter; Resume; Job Application; Interview
1: Looking for Openings: Internet (careeronestop.com), college career office, personal networking are best ways to find job openings
2: Application/Cover Letter: Should always accompany resume; business letter format; 3 paragraphs long; tailored to each job; think of as a “commercial” for yourself; follow up within hours
3: Resume: Should be only one page; easy to read; contact information should be large at top (professional address); strongest experience should be first, listed reverse chronologically by institution; beware compromising information and don’t exaggerate/lie!

3. Applying for a job . . .
4: Job Application: fill out completely (don’t leave anything blank; be sure to have all personal and reference info with you at interview; don’t lie or exaggerate!
5: Interview: Research the company/job beforehand; practice interviewing beforehand; Show up at least 15 minutes early; Dress formal unless specifically told not to; bring copies of resume and refences on nice paper; shake hands confidently and maintain eye contact; interview should be more like a conversation than interrogation; beware inappropriate topics/questions; ask for business cards of all interviewers; send follow up thank you letter/ within hours

4. Entrepreneurship
Entrepreneurs are one of the 4 factors of production; bring together the other three factors of production (land, labor, capital); has the idea for a new product/service or new way of delivering existing product/service
They are usually willing to take risks, be independent, be leaders, enjoy being recognized, be confident, be hard working, be well organized, and are self-starters.
Characteristics of working for someone else: greater job stability; set work hours, benefits and responsibilities; fixed salary
Characteristics of being an entrepreneur: less job security; variable/more work hours; self-funded benefits; more/varied responsibilities; unlimited income (and sense of satisfaction of ownership)!

5. Wages and Human Capital
Income is money earned for using one of the factors of production (Land  Rent; Labor  Salary & Wages; Capital  Interest; Entrepreneurs  Profit)
Most common source of income is Salary and Wages; influenced by: Rarity/Level of Human Capital Required; Supply/Demand for position; Regional Standard of Living
Human Capital: Talent, Education, Skills, Abilities, Training, Certification, etc. that influence productivity
Generally the more rare/valuable your human capital, the higher your salary!
Fastest growing professions (as of 2015) require post-secondary training, master’s degree or professional/doctoral degree; mostly in medical field

6. TAXES!!!
Gross Pay: pay before taxes and deductions; calculated by multiplying wages by number of hours worked or dividing salary by monthly (12) or biweekly (24) intervals
Net Pay: pay after taxes and dedications; calculated by adding all taxes and deductions and subtracting from Gross Pay!
W-4 Form: (Employee's Withholding Allowance Certificate):
specifies how many “allowances” you intend to claim when you file your taxes; determines how much employer will withhold from your paycheck;
You are allowed one “allowance” for each person you support (dependents); each dependent may only be claimed ONCE!
Recommended that you claim1 less than number of dependents you will file on your taxes to make sure you always get a partial refund (by overpaying your taxes!)

7. TAXES!!!
Mandatory Deductions: Federal, State and Local Income Taxes; Social Security and Medicare (FICA) Taxes
Voluntary Dedications: Life Insurance, Health Insurance, Retirement Account; etc; highly recommended since deductions are “pre-tax” your dollar is worth more and deductions could lower your tax bracket!
Tax Brackets: US has a “progressive” income tax system; the more your earn, the more you pay (level by level, 10% to 39%).
W-2 Form: Form from employer that lists all wages, salary, tips, deductions, etc.
1099 Form: Form from institutions that that reports miscellaneous income (interest, dividends, self-employment income, gambling winnings, etc.)
1040EZ/1040A/1040: Tax form that must be filed by April 15 every year; the earlier you file, the faster you get your partial refund (if you are entitled to one)

8. TAXES!!!
When you file your 1040, you will see whether the taxes that have been withheld (based on your W-4/W-2) are correct:
If you overpaid, you will receive a partial refund!
If you underpaid, you will have to pay the difference!
Tax Saving Strategies:
Claim 1 less dependent on your W-4!
Take as many voluntary deductions as your employer allows!
Invest in tax free assets!*
Donate to Charity!*
Buy a house!*
Have children!* 