1. 1.13.1.G1 © Family Economics & Financial Education – Revised March 2008 – Paychecks and Taxes Unit – Understanding Your Paycheck Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Paychecks and Tax Forms Take Charge of your Finances Family Economics & Financial Education

2. 1.13.1.G1 © Family Economics & Financial Education – Revised March 2008 – Paychecks and Taxes Unit – Understanding Your Paycheck Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Where Does My Money Go? Almost ____ of an individual’s paycheck is deducted –Taxes are the _____________________________ –Therefore, it is important to ___________________________

3. 1.13.1.G1 © Family Economics & Financial Education – Revised March 2008 – Paychecks and Taxes Unit – Understanding Your Paycheck Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Paying Employees Three methods employers may use to pay employees: 1.Paycheck- _______________________ Immediately see __________________

4. 1.13.1.G1 © Family Economics & Financial Education – Revised March 2008 – Paychecks and Taxes Unit – Understanding Your Paycheck Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Paying Employees continued 2.Direct Deposit- Employers directly deposit employee’s ______________ ______________________________________________ Employee receives the paycheck stub ________________ Most secure because there is no ____________________ Employee knows ______________________________

5. 1.13.1.G1 © Family Economics & Financial Education – Revised March 2008 – Paychecks and Taxes Unit – Understanding Your Paycheck Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Paying Employees continued 3. Payroll Card- A payroll card electronically _____________________ ___________________________________________ Funds are directly deposited by an employer into an account at a _____________________________ _________________________________________ –Parties involved: »_____________ »______________ »_______________ Use the payroll card for ________________________ ----------------------------------------------------------------------- -

6. 1.13.1.G1 © Family Economics & Financial Education – Revised March 2008 – Paychecks and Taxes Unit – Understanding Your Paycheck Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Payroll Card There are numerous fees associated with payroll cards –Number of fees depends_________________________ –Examples: _____________________ Replacement fee if the card is_______________________________ Load fee _________________________________ Point of sale (POS) fee for using the card at a POS terminal, or an ______________________________________

7. 1.13.1.G1 © Family Economics & Financial Education – Revised March 2008 – Paychecks and Taxes Unit – Understanding Your Paycheck Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Benefits of Using Payroll Cards _________________ –Lower internal costs Costs associated with producing, handling, and distributing pay checks is eliminated Depository Institutions –Profit from the fees charged to__________________________ _________________ –Safer than ___________________ –Unbanked employees do not have to pay check cashing fees Americans roughly spend ________ annually in check cashing fees –Can access electronic monthly ____________________________ –Can receive a second card ___________________ –Easily make online purchases

8. 1.13.1.G1 © Family Economics & Financial Education – Revised March 2008 – Paychecks and Taxes Unit – Understanding Your Paycheck Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Consumer Protection with Payroll Cards Regulation E – Electronic Fund Transfer Act –Protects payroll card____________________________________ Card holder is only liable for $50 if a lost or stolen card is reported within 48 hours –Over four million paychecks are _________________ –Regulation E provides ________________________ __________________________________________

9. 1.13.1.G1 © Family Economics & Financial Education – Revised March 2008 – Paychecks and Taxes Unit – Understanding Your Paycheck Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Taxes Taxes – ______________________________ ______________________________________ –Used to provide ________________________ –Largest amount of taxes ______________________ Internal Revenue Service (IRS) – Collects federal taxes, issues regulations, ___________________ _______________________________________

10. 1.13.1.G1 © Family Economics & Financial Education – Revised March 2008 – Paychecks and Taxes Unit – Understanding Your Paycheck Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Starting a New Job To receive a paycheck, an employee must: –Complete a ______________________ Employee’s Withholding ________________ –Complete a ______________________ Employment Eligibility________________

11. 1.13.1.G1 © Family Economics & Financial Education – Revised March 2008 – Paychecks and Taxes Unit – Understanding Your Paycheck Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Form W-4 Employee’s Withholding Allowance Certificate –Determines the ___________________________ Allowances –Used to determine the amount of _______________ _______________________________________ –A person may claim a personal allowance _________ _________________________________________ Dependent – __________________________________

12. 1.13.1.G1 © Family Economics & Financial Education – Revised March 2008 – Paychecks and Taxes Unit – Understanding Your Paycheck Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Steps to Completing a Form W-4 Print or type legal name on __________ and home address directly below the name Write ___________________on Line 2 On Line 3, check the appropriate box to indicate ________________ Enter a ______ on Line 5 if not claiming any allowances Sign ____________the form before giving it to the employer Keep a copy for ___________________

13. 1.13.1.G1 © Family Economics & Financial Education – Revised March 2008 – Paychecks and Taxes Unit – Understanding Your Paycheck Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Form I-9 Employment Eligibility Verification Form Used to verify the ________________________ _______________________________________ Must provide documentation ________________ _______________________________________ –Examples include driver’s license, ________________ –_________________________________________