1. Other Career Factors/Costs to Consider
Becoming a Parent
According U.S. Department of Agriculture
American families spend $139,000 - $191,000 per child from birth to age 18.
Cost of Living
The amount of money it takes to purchase typical living expenses in a particular city.

2. Common Employee Benefits
Additional programs such as paid:
Vacation
Sick leave
Health plan
Retirement plan
Tuition reimbursement

3. Gross Pay vs. Net Pay
If you have a job now, do you actually take home every dollar that you earn? Why not? Gross Pay: Total earnings before deductions Net Pay: Take-home pay; earnings after deductions

4. Taxes
Required contributions (voluntary compliance) imposed on citizens’ income, goods and services by local, state, and federal government used for:
Road maintenance
Research
Education
Armed services, national defense, veterans, and foreign affairs
Retirement income for elderly
Social programs
Physical, human, and community development
Law enforcement
Interest on the national debt

5. Types of Payroll (Income) Taxes
Federal Withholding Tax
Taxable amounts are based on:
Married or Single
Number of Withholding Allowances
Gross Pay
Example:
Married pays less tax than Single
More withhold allowances claimed, less tax withheld
More money you make, greater tax percent paid
UT – Withholding Tax

6. Types of Payroll Taxes (Continued)
Social Security Tax
2010 taxable amount: 6.2% of gross pay; gross pay limit of $106,800
Provides the following benefits for employees and their dependents:
retirement benefits
death benefit
benefits for the disabled and their dependents
Medicare Tax
2010 taxable amount: 1.45% of gross pay: no gross pay limit
Federal health insurance program for people age 65 and older and for individuals with disabilities.

7. Read & Interpret Pay Stubs

8. Voluntary Payroll Deductions
Health Insurance
Retirement
Savings Plans
Union Dues
Charitable Contributions
Other—Child Support—Garnish of Wage

9. Types of Tax Forms W-4: Employee’s Withholding Allowance Certificate
Fill out when you start a job to document marital status and withholding allowances
I-9: Employment Eligibility Verification
Legally authorized to work in the
United States

10. Types of Tax Forms (Continued)
W-2: Wage and Tax Statement
Sent to employee by employer by January 31st.

11. Types of Tax Forms (Continued)
1040 or “Long Form”
1040EZ “Easy Form”
Starting form for filing personal income tax returns
Filing deadline: April 15th
Can file yourself, CPA, Computer Tax Program, H & R Block, Online Tax Programs…