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

2. New Form of Payment?

3. 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?

4. 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

5. 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?

6. 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