Presentation on theme: "FL Chapter 2 Study Guide KEY…"— Presentation transcript:
1 FL Chapter 2 Study Guide KEY… Two types of employees:HourlySalariedLowest rate of pay:Minimum WageOvertime is 1.5 times regular pay for over 40 hoursWhat type of employee does not keep time cards?
2 5. List required payroll deductions Federal income taxstate income tax (most states but not all)social security taxmedicare tax6. optional (voluntary) payroll deductionsretirement (401K, 403B, pension)disability insurancemedical insurance contributionunion dueslife insurance
3 7. Forms of payment other than wages or salary: BENEFITS 8 7. Forms of payment other than wages or salary: BENEFITS 8. Benefits for full-time workers: Pay without work (vacations, holidays, sick pay) Education reimbursement Perks Retirement plans (company matching) Stock option plans Medical/Dental InsurancePay without work refers to times when an employee who is not working will still be paid. Examples: Paid vacations, holidays and sick daysK is a Retirement plan. - NOT taxed until you withdraw it.It is an OPTIONAL deduction from your paycheck.
4 11. Self-employed person who takes risk of owning business: ENTREPRENEUR12. Lifestyle Business: Your own hobbies and intends to keep it small and work it him/herselfVenture Business: Intends to expand and become a corporationSelf employment:Advantages: Disadvantages:owner makes all decisions must take risks (risky)sets the hours of the business long, hard work at firstkeeps all profits money tight at firstMoney received from sources other than actively working a job:UNEARNED INCOME
6 16. Perks:Office with a view, company car, parking space, coffee station17. Benefits of paying taxes:public roads and highwayspolice protectionpublic schoolsnational and local parksnational security – armed forces18. Disability Insurance: replaces lost income when illness or injury prevents an employee from working. It is an OPTIONAL deduction.
7 19. a. Regular Pay: 40 x $10 = $400Overtime Pay: 5 x $15 = $75Total Gross Pay: $475b. Weekly salary: $39,000/ 52 weeks = $750/ week Gross Payc. Gross pay per week = $750750 x 10% = $75 federal income tax750 x 6.2% = $46.50 social security tax750 x 1.45% = $10.88 medicare taxTotal Deductions = $132.38750 – = $ Net Pay per week
8 Quiz your neighbor on the key terms- 3rd page on your study guide Ch. 2 Quiz Today5 minute opener:Quiz your neighbor on the key terms- 3rd page on your study guideThen: Quiz Review Game.
9 19. Self-employment Advantages and Disadvantages can make the decisionscan set your own hourscan keep all the profitsif fails, invested money is lostmust take risks (risky)hard to get creditinitial startup is hard workmoney tight at firstCritical Listening SkillsEvaluate the informationConsider only important or relevant infoMake decision on what is accurate and usefulFocus and eliminated distractionsFace the speaker, make eye contact, nod and show interestMentally summarize main points
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