1. Unit 2 Chapters 6, 8 & 9

2.  Chapter 7 is taxes  Cover close to tax time  6, 8 & 9 will have more terms  Will be responsible for these terms

3. Chapter 6  Employee Pay and benefits  What is employee pay?  What are different ways you can be paid?

4. Ways To Get Paid  Hourly Wages  Overtime  Shift Differential  Salary –Bi weekly –Monthly –Annually  Piece work  Bonus  Merit Pay  Barter  Commission

5. Calculate Your Pay  You work in a department store. You earn $7.50 per hour plus 1% of all sales you make each pay period. You worked 80 hours and sold $200 per hour. What was your GROSS earnings? –$200 sales/hr X 80 hours = $16,000 –$16,000 in sales X.01 (1%) = $160 –80 hours X $7.50 = $600 –Total pay = $160 + $600 = $760 –Annual pay = $720 X 50 = $37,500

6. Calculate Your Pay  Now you calculate  You work selling by phone. You earn $3.50 per hour plus 5% of all sales you make each pay period. You worked 80 hours and sold $100 per hour. What was your GROSS earnings? –$100 sales/hr X 80 hours = $8,000 –$8,000 in sales X.05 (5%) = $400 –80 hours X $3.50 = $280 –Total pay = $280 + $400 = $680 –Annual pay = $680 X 50 = $34,000

7. Calculate Your Pay  You work selling a product. Your salary is $48,000 per year. You make a commission of 2% of all sales. You sell about $2,000,000 per year. What was your GROSS earnings for the year? –$2,000,000 in sales X.02 (2%) = $40,000 –Annual salary = $48,000 –Annual pay = $40,000 + $48,000 = $88,000 –What is your bi weekly pay from your salary? –What is your monthly commission?

8. Calculate Your Pay –What is your bi weekly pay from your salary? –What is your monthly commission? –Bi weekly $48,000 ÷ 26 = $1,846.15 – Monthly $48,000 ÷ 12 = $4,000

9. Benefits & Incentives  Profit sharing  Stock Options  Paid Vacation  Holidays  Employee Services  Sick Pay  Leave of Absence  Flextime

10. Terms Chapter 6  Deductions  Employee Services  Fringe benefits  Gross pay  Net pay  Collective Bargaining

11. Collective Bargaining Activity  4 groups  2 are workers groups  2 are owners  Negotiate a salary raise

12. Terms  Seniority  Strike  Vested

13. Benefits and Incentives  Insurance –Health –Life –Dental –Vision  Stock Options  Pension  Retirement Savings Plans  Travel Expenses

14. T/P/S  What are some items on a pay check you need to know about?  What is FICA  What is Medicare/Medicaid

15.  Gross Pay  Deductions  Net pay

16. Income & The W-4  Read p 17 to 18 in NEFE book  Be able to answer all terms highlighted in blue

17. The W - 4 Form  Go to the IRS Web site  Look at a W-4 form  What is the purpose of the W-4?

18.  The standard deduction for 2010 is –$5,700  If you make less, no fed taxes  More, pay some federal taxes  Decision – get $ each pay – or as a bigger refund

19. Paycheck Mistakes  Most occur when payroll is done in house –Not by a payroll company like ADT  Common Mistakes –Incorrect hours credited –Overtime pay –Wrong taxes

20. Taxes  Name the payroll taxes –Federal income tax –State income tax –City or local income tax –FICA –Medicare/medicaid –UI/DI

21.  Go to www.irs.gov www.irs.gov  In the box to the right, type in tax tables  Go to the first entry on list and click  Filling out a W-4 form impacts deductions

22. Other Deductions  Retirement –401K –403B  Medical –Standard –Dental –Vision –Life Insurance  Union Dues

23. The Pay Stub

24. Terms  Incentive pay  Job rotation  Job sharing  Lobbying  Professional organization

25. Terms Chapter 8

26. Budget  Budget activity

27. NEFE Book  Read pgs 33 to 38  Using the budget worksheet on my web site, answer the questions

28. Terms  Assets  Budget  Contract  Cosigner  Disposable Income  Financial plan

29. Terms  Fixed expenses  Liabilities  Variable Expense  Negotiable instrument  Mutual assent