1. Daily Information 3/10/14 Objectives:
3/10/2014
Daily Information 3/10/14
Objectives:
Identify items that are listed on a paycheck stub.
Differentiate between gross and net income.
Warm Up:
How much money does a person need?
Record all your expenditures from the weekend in your budget.
Agenda:
Warm Up
Student P.P.
Word Cloud
Getting Paid P.P.
Student notes
Getting Paid Math
Exit Ticket

2. Getting Paid
Chapter 2
Lesson 2

3. Types of Income Earned Unearned Wage/Hourly Salary Tip Commission
***
Earned
Unearned
Wage/Hourly
Salary
Tip
Commission
Interest
Dividends (cash and stock)
Pension

4. Would you rather be paid a salary or hourly wage?
Salary vs. Hourly
Salary
Set amount of money
No time cards or overtime pay
Example: $30,000/year
Hourly wage
Earn a specific rate for every hour worked
Example: $16.00/hour
Minimum wage
Would you rather be paid a salary or hourly wage?

5. Payroll deductions
Gross income - amount of money earned before payroll taxes
Deductions
Net income – take home pay
Mandatory
Optional

6. Pay Check Deductions Mandatory Deductions Optional Deductions
***
Mandatory Deductions
Optional Deductions
Federal income tax
State income tax
Local income tax
Social Security Tax
Medicare Tax
Health Insurance
Life Insurance
Disability Insurance
Retirement Plan

7. Federal Income Tax Largest required deduction Amount of money earned
Information on Form W-4
Amount deducted
How do you benefit from paying taxes?

8. What is Social Security?
Provides
Tax deducted from wages
Income for:
Retirees
People with disability
6.2%
Paid by each worker and matched by employer

9. Tax deducted from wages
What is Medicare?
Provides
Tax deducted from wages
Helps pay for health care for individuals 65 and older
1.45%
Paid by each worker and matched by each employer

10. How Employers Further Support Employees
***
Workers’ compensation
Helps pay medical expenses if you are injured on the job
Unemployment insurance
You can receive this if you lose your job due to no fault of your own
Both required at no cost to the employee

11. How Employers Further Support Employees
***
Through Benefits:
Forms of pay other than salary or wages
Increase the overall value of disposable income
Pay without work (vacation, sick, personal)
Perks (emotional satisfaction or social status)
Educational Benefits
Retirement Plans
Insurance

12. What is a pay stub? Pay stub - outlines the deductions made to wages
Employee Information
Pay Date: 6/11/2013
Name
Identification Number
Address
Pay Rate
Pay Period
Joe Beakens
293 Michael Grove
$15.00
5/1 – 5/31/2013
Summary
Gross Income
Total Personal Deductions
Net Income
Current
$2,400.00
$747.00
$1,653.00
YTD
$12,000.00
$3,735.00
$8,265.00
Earnings
Type
Rate
Hours
Regular
160
Overtime
Deductions
Personal Deduction
Employer Contribution
Federal income tax
$249.40
State income tax 
$100.00
Social Security and Medicare
$183.60
Retirement plan
$144.00
Health insurance
$400.00
Workers’ compensation
$13.80
Unemployment insurance
$6.26
Employee Leave Balances
Beginning balance current
Beginning balance YTD
Used Current
Used YTD
Ending Balance
Personal 10 15 5
Sick
Pay stub - outlines the deductions made to wages
Why is it important to review your pay stub?

13. Pay Stub Name Standard Employee Information Address
Pay Date: 6/11/2013
Name
Identification Number
Address
Pay Rate
Pay Period
Joe Beakens
293 Michael Grove
$15.00
5/1 – 5/31/2013
Summary
Gross Income
Total Personal Deductions
Net Income
Current
$2,400.00
$747.00
$1,653.00
YTD
$12,000.00
$3,735.00
$8,265.00
Earnings
Type
Rate
Hours
Regular
160
Overtime
Deductions
Personal Deduction
Employer Contribution
Federal income tax
$249.40
State income tax 
$100.00
Social Security and Medicare
$183.60
Retirement plan
$144.00
Health insurance
$400.00
Workers’ compensation
$13.80
Unemployment insurance
$6.26
Employee Leave Balances
Beginning balance current
Beginning balance YTD
Used Current
Used YTD
Ending Balance
Personal 10 15 5
Sick
Standard Employee Information
Name
Address
Identification number

14. Pay Period Pay Stub Regular schedule that employers pay employees
Employee Information
Pay Date: 6/11/2013
Name
Identification Number
Address
Pay Rate
Pay Period
Joe Beakens
293 Michael Grove
$15.00
5/1 – 5/31/2013
Summary
Gross Income
Total Personal Deductions
Net Income
Current
$2,400.00
$747.00
$1,653.00
YTD
$12,000.00
$3,735.00
$8,265.00
Earnings
Type
Rate
Hours
Regular
160
Overtime
Deductions
Personal Deduction
Employer Contribution
Federal income tax
$249.40
State income tax 
$100.00
Social Security and Medicare
$183.60
Retirement plan
$144.00
Health insurance
$400.00
Workers’ compensation
$13.80
Unemployment insurance
$6.26
Employee Leave Balances
Beginning balance current
Beginning balance YTD
Used Current
Used YTD
Ending Balance
Personal 10 15 5
Sick
Pay Period
Regular schedule that employers pay employees
Weekly, bi-weekly, bi-monthly, or monthly

15. Pay Stub Gross income Net income Current Year-to-date (YTD)
Employee Information
Pay Date: 6/11/2013
Name
Identification Number
Address
Pay Rate
Pay Period
Joe Beakens
293 Michael Grove
$15.00
5/1 – 5/31/2013
Summary
Gross Income
Total Personal Deductions
Net Income
Current
$2,400.00
$747.00
$1,653.00
YTD
$12,000.00
$3,735.00
$8,265.00
Earnings
Type
Rate
Hours
Regular
160
Overtime
Deductions
Personal Deduction
Employer Contribution
Federal income tax
$249.40
State income tax 
$100.00
Social Security and Medicare
$183.60
Retirement plan
$144.00
Health insurance
$400.00
Workers’ compensation
$13.80
Unemployment insurance
$6.26
Employee Leave Balances
Beginning balance current
Beginning balance YTD
Used Current
Used YTD
Ending Balance
Personal 10 15 5
Sick
Gross income
Net income
Current
Year-to-date (YTD)
Amount this pay period
Amount from January 1 to last day of current pay period

16. Earnings Pay Stub How wages were calculated May show current and YTD
Employee Information
Pay Date: 6/11/2013
Name
Identification Number
Address
Pay Rate
Pay Period
Joe Beakens
293 Michael Grove
$15.00
5/1 – 5/31/2013
Summary
Gross Income
Total Personal Deductions
Net Income
Current
$2,400.00
$747.00
$1,653.00
YTD
$12,000.00
$3,735.00
$8,265.00
Earnings
Type
Rate
Hours
Regular
160
Overtime
Deductions
Personal Deduction
Employer Contribution
Federal income tax
$249.40
State income tax 
$100.00
Social Security and Medicare
$183.60
Retirement plan
$144.00
Health insurance
$400.00
Workers’ compensation
$13.80
Unemployment insurance
$6.26
Employee Leave Balances
Beginning balance current
Beginning balance YTD
Used Current
Used YTD
Ending Balance
Personal 10 15 5
Sick
Earnings
How wages were calculated
May show current and YTD

17. What are examples of deductions?
Pay Stub
Employee Information
Pay Date: 6/11/2013
Name
Identification Number
Address
Pay Rate
Pay Period
Joe Beakens
293 Michael Grove
$15.00
5/1 – 5/31/2013
Summary
Gross Income
Total Personal Deductions
Net Income
Current
$2,400.00
$747.00
$1,653.00
YTD
$12,000.00
$3,735.00
$8,265.00
Earnings
Type
Rate
Hours
Regular
160
Overtime
Deductions
Personal Deduction
Employer Contribution
Federal income tax
$249.40
State income tax 
$100.00
Social Security and Medicare
$183.60
Retirement plan
$144.00
Health insurance
$400.00
Workers’ compensation
$13.80
Unemployment insurance
$6.26
Employee Leave Balances
Beginning balance current
Beginning balance YTD
Used Current
Used YTD
Ending Balance
Personal 10 15 5
Sick
Deductions
All deductions from gross income
What are examples of deductions?

18. Employer contributions
Pay Stub
Employee Information
Pay Date: 6/11/2013
Name
Identification Number
Address
Pay Rate
Pay Period
Joe Beakens
293 Michael Grove
$15.00
5/1 – 5/31/2013
Summary
Gross Income
Total Personal Deductions
Net Income
Current
$2,400.00
$747.00
$1,653.00
YTD
$12,000.00
$3,735.00
$8,265.00
Earnings
Type
Rate
Hours
Regular
160
Overtime
Deductions
Personal Deduction
Employer Contribution
Federal income tax
$249.40
State income tax 
$100.00
Social Security and Medicare
$183.60
Retirement plan
$144.00
Health insurance
$400.00
Workers’ compensation
$13.80
Unemployment insurance
$6.26
Employee Leave Balances
Beginning balance current
Beginning balance YTD
Used Current
Used YTD
Ending Balance
Personal 10 15 5
Sick
Amount the employer has contributed to various employee benefits and other contributions.
Employer contributions

19. Employee Leave Balance
Pay Stub
Employee Information
Pay Date: 6/11/2013
Name
Identification Number
Address
Pay Rate
Pay Period
Joe Beakens
293 Michael Grove
$15.00
5/1 – 5/31/2013
Summary
Gross Income
Total Personal Deductions
Net Income
Current
$2,400.00
$747.00
$1,653.00
YTD
$12,000.00
$3,735.00
$8,265.00
Earnings
Type
Rate
Hours
Regular
160
Overtime
Deductions
Personal Deduction
Employer Contribution
Federal income tax
$249.40
State income tax 
$100.00
Social Security and Medicare
$183.60
Retirement plan
$144.00
Health insurance
$400.00
Workers’ compensation
$13.80
Unemployment insurance
$6.26
Employee Leave Balances
Beginning balance current
Beginning balance YTD
Used Current
Used YTD
Ending Balance
Personal 10 15 5
Sick
Employee Leave Balance
Summary of the employee’s leave time
Sick
Vacation
Holidays

20. Summary: Critical Information
There are required and optional deductions
Being employed provides additional benefits beyond wages earned
Employers are required to pay unemployment insurance and worker’s compensation
There is earned and unearned income

21. 3/12 Daily Information 3/12/2014 Objectives:
1. Discuss the advantages and disadvantages of self-employment
2. Calculate net and gross pay amounts
Warm Up:
How do you calculate gross pay if you are an hourly employee?
Enter expenditures in student budget.
Agenda:
Warm-up
Exemptions and Self-Employment P.P.
Taboo game
Getting Paid Math
Reinforcement activity

22. 3/12 Daily Information 9/29/2014 Objectives:
Describe how exemptions claimed on the W4 form effect taxes.
Discuss the advantages and disadvantages of self-employment
Warm Up:
What is the difference between the W2 and W4 form.
Agenda:
Warm-up
Exemptions and Self-Employment P.P.
Taboo game
Reinforcement activity

23. W4 Form Filing Taxes Self Employment
Chapter 2
W4 Form
Filing Taxes
Self Employment

24. Starting a New Job Form W-4
Employee’s Withholding Allowance Certificate
Determines the amount of money withheld for taxes

25. Form W-4 Allowances Allowance
May claim an allowance only if no one else claims that person as a dependent
Dependent - person who relies on the taxpayer for financial support
Qualifying child
Qualifying adult relative
Rule of thumb = may (but not required) claim an allowance for every dependent

26. Allowances Number of allowances claimed Federal income tax deducted
Federal income tax liability
Individuals may change their Form W-4 at any time

27. W-4 Form
Federal and State income taxes are withheld according to income and amount of exemptions/Allowances claimed on the W-4 form
Exemption = Allowances = Dependent (a person that depends on you for more than half of his or her support)
Income tax breaks that reduce your taxable income
More exemptions claimed = less tax withheld
Can claim one for yourself (unless claimed by someone else)
Married people with children can claim more exemptions
Exemption = Allowances = Dependent (a person that depends on you for more than half of his or her support)

28. Exemptions Assume each exemption is worth $3,700
Remember, you may claim yourself as an exemption, your spouse, and all children
Calculate the amount of exemptions for the Bell Family

29. The Bell Family Husband: Marty Salary: $85,000 Wife: Katie
Children:
Sam, Patty, Oliver
Husband: Marty, salary $85,000 Wife: Katie, salary $65,000 Children: Jules, Patty, and Sue
Total family income:
85, ,000 = 150,000
Subtract total exemptions:
5 X 3,700 = 18,500
Total taxable income:
150,000 – 18,500 = 131,500

30. Filing Taxes
W-2 form: used to report taxable income during the calendar year
1040EZ form: short tax return designed for single and joint filers with no dependents
E-filing results in refunds received much more quickly than a paper return

31. Self-Employment Advantages Disadvantages
Make decisions: what products/services to product
Set your own hours
Keep all the profits
Entrepreneur: person who takes the risk of being self-employed and owning a business
Risk
If the business fails, the money invested is lost
Use your personal credit to keep the business running
In the first three years, there will be long hours with little pay

32. Types of small Businesses
Lifestyle businesses
Stays small and exists for the life of the owner
Venture businesses
Continues to grow to become a corporation
Continues after the life of the owner
Slide 32

33. Taboo
The object of Taboo is for a player to have his/her team guess the term at the top of a Taboo card by describing the term without using any of the words listed underneath it.

34. Homework
First page of “Getting Paid Math”

35. 3/12 Daily Information 3/17/2014 Objectives: Warm Up: Agenda:
1. Discuss the advantages and disadvantages of self-employment
2. Calculate net and gross pay amounts
Warm Up:
If you have not already done so, calculate your bi-weekly gross pay based on your annual income for the career project.
Ex) 62,000/26 = $2,384.62
Agenda:
Warm-up
Study Guide
Project: Career, Resume

36. 3/12 Daily Information 3/18/2014 Objectives: Warm Up: Agenda:
1. Discuss the advantages and disadvantages of self-employment
2. Calculate net and gross pay amounts
Warm Up:
Quiz Today!!
Take out your study guide and review.
Update your student budget with any changes.
Agenda:
Warm-up
Ch2 Quiz
Project: Career, Resume, Paycheck