1. Warm-up: Payroll Exemptions
Let’s look at a W-4 together

2. Paycheck
Gross wage/pay—the total amount of money you take in before taxes

3. Paycheck
Net wage/pay—the amount of money you take in after taxes

4. What gets taken out of your paycheck?
Mandatory Taxes (federal, state, local)

5. What gets taken out of your paycheck?
Social Security and Medicare (FICA)
Money to old people

6. What gets taken out of your paycheck?
Court mandated deductions
Child support, etc.

7. What gets taken out of your paycheck?
Optional deductions
Automatic savings
Insurance (Life, health)

8. What gets taken out of your paycheck?
Optional deductions
Contributions to 401(k) plans—you put money in the 401(k) now and cannot use it until retirement; you are not taxed on it until later

9. Payroll Exemptions
The more exemptions you take, the higher your net pay each paycheck
You will owe more money when you do your taxes (due April 15)

10. Payday Loans
Short-term loans that give you money now, but charge you a very high interest rate
Very, very, very expensive

11. Deposit Advance Loans Called Checking Account Advance
Allow bank checking account holders to get an expensive short-term advance

12. Reading a Pay Stub