EMPLOYEE PAY AND BENEFITS by nhz10206

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									Teaching Transparency 6-1




 EMPLOYEE PAY AND BENEFITS
People work for wages or salary, called gross pay.
Deductions are subtracted, leaving net pay (your
paycheck).
There are many benefits to working (besides
paychecks):
    • Profit sharing
    • Paid vacations and holidays
    • Employee services
    • Child care
    • Sick pay
    • Leaves of absence
    • Insurance coverage
    • Bonuses and stock options
    • Pension and savings plans
    • Travel expenses, and so on
The workplace is exciting and ever-evolving, provid-
ing many opportunities such as:
    • Flextime
    • Compressed workweek
    • Job rotation
    • Job sharing
    • Permanent part-time
    • Telecommuting
Unions and professional organizations assist
employees by promoting their employment interests.


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                          Teaching Transparency 6-2




        YOUR PAYCHECK

1. Your paycheck may be weekly,
   biweekly, or monthly.
   • Hourly wages
   • Overtime
   • Salary
2. Deductions are subtracted from your
   wages.
   • Required deductions:
    - Income taxes
    - Social security taxes
   • Optional deductions:
    - Insurance
    - Donations
    - Savings plans
    - Car payments
3. Net pay is the amount of your
   paycheck.


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Teaching Transparency 6-3




   TRENDS IN THE WORKPLACE

  • Flexible scheduling around core time
    period
  • Compressed workweek (ten-hour day,
    four days a week)
  • Job rotation (learning new jobs)
  • Job sharing (two people share a full-
    time position)
  • Permanent part-time work to facilitate
    life choices
  • Telecommuting (working at home)




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                              Teaching Transparency 6-4




 WHO NEEDS LABOR UNIONS?

PURPOSE
  • To protect the rights of workers

PRIMARY FUNCTION
  • To negotiate salary, fringe benefits,
    and working conditions

ADVANTAGES
  • Unions—through collective action—
    give employees a way to gain some
    control over the work situation.
  • Unions enforce seniority rights in the
    pursuit of fairness.




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Teaching Transparency 7-1




        FEDERAL INCOME TAXES

1. Are used to pay for government services from
   national defense to highways and parks
2. Are paid by all those who receive income—
   businesses, individuals, trusts, institutions,
   and so on
3. Are progressive taxes—the more you earn,
   the more you pay
4. Are approved and changed by Congress and
   the President of the United States
5. Are collected by the Internal Revenue Service
   (IRS)
6. Are based on all people voluntarily filing their
   tax returns and paying their fair share of taxes
7. Are determined by a tax return filled out by
   April 15 of each year, based on:
   • Gross income (wages, interest, tips, and so
     on)
   • Less adjustments for allowed retirement
     plans and alimony
   • Less deductions (or the standard deduction)
     and exemptions
   • Less any credits


                            26
                                 Teaching Transparency 7-2




           WHY PAY TAXES?

1. Taxes give the federal government money
   to provide all citizens with services they
   could not provide individually or locally,
   such as:
     • National defense
     • National weather service
     • National parks and recreation sites
     • Interstate highways
     • Regulations and agencies to enforce
       safety and health standards
     • Student loans and aid programs
     • Relief when disasters strike (hurricanes,
       earthquakes, and floods)
2. Taxes collected on the state and local lev-
   els provide the following benefits to the
   state and local population:
     • Education
     • State welfare programs
     • Streets, roads, and state highways
     • Police, fire, and health departments
     • Local recreation, safety, and service
       programs

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Teaching Transparency 7-3




           FILING A TAX RETURN

Based on your filing status:
1. Single (not married)
2. Married filing jointly
3. Married filing separately
4. Head of household
5. Widow(er) with dependent child

The more dependents you claim, the less
tax you pay. Who can be a dependent?
1. Any person who lives with you and
    receives more than half his or her living
    expenses from you
2. Dependents are usually children, a
    spouse, elderly parents, or disabled
    relatives living with and depending on
    the taxpayer



                            28
                              Teaching Transparency 7-4




   FORMULA FOR COMPUTING
      YOUR TAX LIABILITY

   Gross Income
   Adjustments (IRAs, alimony, business
   deductions)
   Adjusted Gross Income
   Itemized Deductions or the
   Standard Deduction
   Exemptions
   Taxable Income

Tax is based on the tax tables or schedule.




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Teaching Transparency 7-5




                 TAXABLE INCOME

•    Wages, salaries, tips
•    Interest income
•    Dividend income
•    Unemployment compensation
•    Workers' compensation benefits
•    Alimony

WHAT IS NOT TAXABLE?
• Child support
• Gifts and inheritances
• Life insurance benefits
• Veterans' benefits




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                            Teaching Transparency 8-1




  BUDGETS AND FINANCIAL
        RECORDS

1. Financial planning begins with budget-
   ing and good record keeping.
2. Personal records include:
   • Income and expenses
   • Statement of net worth
   • Personal property inventory
   • Tax records
3. Agreements are entered into every day;
   they should be understood before
   agreeing.
   • Formal agreements (in writing)
   • Informal agreements (by your actions)
   • Negotiable instruments
   • Warranties
4. Keeping good records means having
   some kind of filing system.
   • Manual (file folders)
   • Electronic (using a computer)



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Teaching Transparency 8-2




            PERSONAL PROPERTY
                INVENTORY

A current list of what you own and its value.
WHY?
 • In case of fire, theft, or other damage
 • To keep track of what you own and how you
   are spending your money.

LISTS ALL POSSESSIONS THAT HAVE VALUE:
  • Collections
  • Jewelry
  • Stereos, radios, CD players, CD collections
  • Clothing and personal effects
  • Automobiles
  • Bicycles
  • Lawn mowers, garden tools, and supplies
  • Appliances and gadgets
  • Televisions, VCRs, computers
  • Clocks, paintings, and decorations
  • Furniture and furnishings (lamps, cabinets,
    curios)
  • Contents of your home, car, office, and so
    on

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                                    Teaching Transparency 8-3




               AGREEMENTS

A contract is a legally enforceable agreement.

Formal agreements are written. You sign your name
consenting to the conditions of the agreement.
  • Charge accounts
  • Rental agreements
  • Mortgage
  • Promissory note

Other agreements, although oral, are also enforce-
able.

Some agreements exist because of your conduct
(informal agreements).
   • Driver's license
   • Car registration
   • Pet licensing
   • Work responsibilities
   • Parenting

Agreements are commitments. When you receive
something of value in exchange for something of
value, you are making promises:
  • To drive safely
  • To obey laws
  • To take proper care of those in your charge
  • To do your best

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Teaching Transparency 8-4




        THE RIGHTS OF A MINOR

AS A MINOR
  Contracts made with minors are
  VOIDABLE: The minor can rescind the
  agreement by returning what was given
  to her or him and by canceling her or
  his obligations.

AGE OF MAJORITY
  When the minor becomes age eighteen
  (or the state's age of majority, whichever
  is greater), then the minor loses the
  right to disaffirm, and the contract
  becomes VALID.

SHIELD, NOT SWORD
  The minor must use his or her rights as
  a shield, a protection from those who
  would take advantage, not as a sword to
  take advantage of others.


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                              Teaching Transparency 8-5




 AN ENFORCEABLE CONTRACT

To be enforceable in a court of law, agree-
ments must contain these six elements:

1. Agreement (offer and acceptance)
2. Consideration (value)
3. Contractual Capacity (ability of the par-
   ties to enter into agreements)
4. Legality (legal thing to do)

Some contracts, by their nature, must be in
writing to be enforceable:
    • Contracts for purchase and sale of
      real estate
    • Contracts that cannot be performed in
      less than one year
    • Contracts for the purchase and sale of
      goods over a certain price



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Teaching Transparency 8-6




         HOME FAMILY RECORDS

Recordkeeping can be simple or complex,
manual or computerized.

Manual systems are simple and easy to
use:
   • Record all income received
   • Record all expenditures
   • Keep receipts
   • Keep system neat and orderly;
     information easy to find and use

Electronic systems are inexpensive and
convenient:
   • Budgeting software is available for all
     computers
   • Software applications must be learned
     before software works as it is intended
   • A spreadsheet package, which can
     perform many other tasks such as
     graphing and tables, should be con-
     sidered

                            36
                                      Teaching Transparency 9-1




     CHECKING ACCOUNTS AND
     OTHER BANKING SERVICES
1.   Checking accounts are convenient and safer than
     carrying cash.
     • Canceled checks serve as receipts.
     • Budgeting is facilitated because check records
       are kept.
2.   Opening a checking account is easy and quick.
     • A signature authorization form is prepared.
     • Generally, you must have an initial deposit of
       $50.
3.   Writing checks involves some simple rules.
     • Deposit slips should be used for adding money
       to the account.
     • The checkbook register should be kept accurate
       and a new balance calculated after every entry.
     • The checkbook should be reconciled immediate-
       ly when the bank statement is received.
4.   Check endorsements allow a check to be cashed
     or deposited.
5.   There are many types of checking accounts (spe-
     cial, standard, interest-bearing, or sharedraft).
6.   There are many banking services available: stop
     payment orders, certified checks, cashier's checks,
     money orders, debit cards, safe deposit boxes,
     loans and trusts, financial services, bank credit
     cards, automated tellers, online and telephone
     banking.

                           37
Teaching Transparency 9-2




                        WRITING A CHECK

                                                                                     A   581
       ARDYS JOHNSON
                                             D
       Phone: 555-2737
       4250 West 18th Avenue
       Chicago, IL 60601-2180
                                C
                                                 July 1
                                                     --                   20
                                                                                 B
                                                                                     2-74/710

                    E                                               F
            Food Mart
       PAY TO THE
       ORDER OF                                 $ 36.
                                                      12
       G
       Thirty-sixan d 12/100 -----------------------                           DOLLARS
                                                 FOR CLASSROOM USE ONLY

       SCB              SKY CENTRAL BANK
                        CHICAGO, ILLINOIS
                                            H
       J
         groceries
       MEMO
                                 Ardys Johnson
       |:071000741|: 0581 008’’’40856|| I




A    Check Number
B    ABA Number
C    Maker's Preprinted Name and Address
D    Date
E    Payee
F    Numeric Amount
G    Written Amount
H    Drawer or Maker
I    Account Number
J    Memo


                                            38
                            Teaching Transparency 9-3




     USING A CHECKBOOK
          REGISTER




•   Write clearly and legibly.
•   Keep a running balance
•   Double-check your math.
•   Enter all payments made by check as
    well as deposits, withdrawals, and
    other online transactions at the time
    these transactions occur.


                   39
Teaching Transparency 9-4




         CHECK ENDORSEMENTS

•    Determine how a check can be cashed
     or deposited.
•    Protect you in the event a check is lost
     or stolen.




                            40
                               Teaching Transparency 9-5




 MONEY OTHER THAN CHECKS

When you don't want to send cash, but
your check isn't acceptable, consider:
1. Certified Check
   Your own check guaranteed by the
   bank. Your money is set aside to pay the
   check. A certified check will not bounce.
2. Cashier's Check
   A check drawn by the bank on its own
   funds. You must pay cash for it, or have
   it taken from your checking or savings
   account. A cashier's check will not
   bounce.
3. Money Order
   A method of payment purchased at
   banks, post offices, and other business-
   es. Generally, you must pay cash (your
   personal check is usually not sufficient).
   The money order will not bounce.


                      41

								
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