1. © Family Economics & Financial Education – Revised February 2006 –Get Ready to Take Charge of Your Finances – Planet Paycheck Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona 2.13.1.G1 Daily Information Objectives: 1. List the forms required for work 2. Discuss the advantages and disadvantages of self-employment 3. Calculate net and gross pay amounts Warm Up: Grab a textbook What category of unearned income do social security payments, unemployment benefits, and workers’ compensation fall into? Agenda: 1.Warm-up 2.Vocab. 3.Chapter 2 P.P. continued 4.Exemptions activity 5.Group calculation activity 6.Bottom Line 7.Resume project 2/20

2. © Family Economics & Financial Education – Revised February 2006 –Get Ready to Take Charge of Your Finances – Planet Paycheck Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona 2.13.1.G1 Employment Forms You have just been offered your first job, congratulations! What forms will you be expected to complete? Employment Forms –I-9 form –W-4 form

3. © Family Economics & Financial Education – Revised February 2006 –Get Ready to Take Charge of Your Finances – Planet Paycheck Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona 2.13.1.G1 I-9 Form Employment eligibility verification Verify that workers are eligible to work in the United States

4. © Family Economics & Financial Education – Revised February 2006 –Get Ready to Take Charge of Your Finances – Planet Paycheck Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona 2.13.1.G1 W-4 Form Federal and State income taxes are withheld according to income and amount of exemptions claimed on the W-4 form Exemption = 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

5. © Family Economics & Financial Education – Revised February 2006 –Get Ready to Take Charge of Your Finances – Planet Paycheck Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona 2.13.1.G1 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

6. © Family Economics & Financial Education – Revised February 2006 –Get Ready to Take Charge of Your Finances – Planet Paycheck Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona 2.13.1.G1 The Bell Family Husband: Marty, salary $85,000 Wife: Katie, salary $65,000 Children: Jules, Patty, and Sue Total family income: –150,000 Subtract total exemptions: –18,500 Total taxable income: –131,500

7. © Family Economics & Financial Education – Revised February 2006 –Get Ready to Take Charge of Your Finances – Planet Paycheck Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona 2.13.1.G1 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

8. © Family Economics & Financial Education – Revised February 2006 –Get Ready to Take Charge of Your Finances – Planet Paycheck Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona 2.13.1.G1 Self-Employment AdvantagesDisadvantages 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 Slide 8 Make decisions: what products/services to produce Set your own hours Keep all the profits –Entrepreneur: person who takes the risk of being self-employed and owning a business

9. © Family Economics & Financial Education – Revised February 2006 –Get Ready to Take Charge of Your Finances – Planet Paycheck Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona 2.13.1.G1 Types of small Businesses Slide 9 o Lifestyle businesses o Stays small and exists for the life of the owner o Venture businesses o Continues to grow to become a corporation o Continues after the life of the owner

10. © Family Economics & Financial Education – Revised February 2006 –Get Ready to Take Charge of Your Finances – Planet Paycheck Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona 2.13.1.G1 Group Calculation Activity Within your base groups, complete the following: