Objective: You will learn what deductions come out of your paycheck An employee starting a new job has the option to choose how he is paid for the first twenty days of work. He works five days a week, for four full weeks. Make the best choice for the new employee after comparing the two options. Then, justify your answer. Payment Option 1: For the first twenty days of work, the new employee will be paid $500 a day. Payment Option 2: The pay will be $0.01 for the first day. Each day the pay will double. So, it will be $0.02 the second day, $0.04 the third day, $0.08 the fourth day, etc. By the end of twenty days, how much money will the employee have made?

Double the Salary Payment Option 1: Payment Option 2: $500.00 a day * 20 days = $10,000 Payment Option 2: Day 1 $ 0.01 Day 11 10.24 Day 2 .02 Day 12 20.48 Day 3 .04 Day 13 40.96 Day 4 .08 Day 14 81.92 Day 5 .16 Day 15 163.84 Day 6 .32 Day 16 327.68 Day 7 .64 Day 17 655.36 Day 8 1.28 Day 18 1310.72 Day 9 2.56 Day 19 2621.44 Day 10 5.12 Day 20 5242.88 Total: $10,485.75

Solution Payment Option 1: $500.00 a day * 20 days = $10,000.00 This is a better choice for the new employee as he will be making $10,485.75 This is $485.75 more than if he would have chosen Payment Option 1

Journal Today I learned… I still don’t understand…. When I get paid, I hope…

You will learn about forms needed to begin a new job From the video yesterday, what are the taxes that come out of your paycheck used for? What other things might be deducted from your paycheck?

Journal What is a W-4? How does the way you fill it out affect your pay?

You will learn how to read a pay stub Get a handout from the front of the room. Complete it.

Get a handout from the front of the room. Complete it. You will learn how to read a paycheck and characteristics of payment methods Get a handout from the front of the room. Complete it.

You will learn how to read a paycheck and characteristics of payment methods What two forms must an employee complete when beginning a new job? What documentation must be provided to complete a form I-9? What does the form W-4 determine? What information is provided on form W-2? How much money was earned and paid in taxes throughout the previous year Form W-4 and Form I-9 Amount of gross income which will be withheld for taxes Drivers license, social security card, military ID card, birth certificate

Journal If you had the choice, which method of payment would you choose, a payroll card, direct deposit, or a paycheck? Why would you choose that!

Get a handout from the front of the room. Complete it. You will learn how to read a paycheck and term associated with a pay stub Get a handout from the front of the room. Complete it.

Ways of Getting Paid Payroll Card Employers directly deposit an employee’s paycheck into his/her bank account and send the employee the pay stub. Electronically carries the balance of the employee’s net income What are the tree methods discussed that an employer might use to pay his/her employees The length of time for which an employee’s wages are calculated Payroll Card Paycheck, direct deposit, payroll card Pay period Direct Deposit

Journal What would be higher, your net pay or your gross pay? Explain why.

You will practice reading a pay stub Get a handout from the front of the room. Complete it.

You will practice reading a pay stub When reading a paycheck 3 things I should always remember are …

You will review for a quiz tomorrow Get a handout from the front of the room and complete it.

Taxes What two tax forms are represented within FICA? Services our tax dollars are used for? Required charges of citizens by local, state, and federal governments What does social security fund? Social Security and Medicare Nations Retirement Program Police, schools, roads, emergency services, government agencies, etc. Taxes

Journal Tonight for my test, I need to review_________ because_____________

You will take your test on Planet Paycheck Get a handout from the front of the room and complete it.

Payment Method Pros and Cons Paycheck Pros: Cons: Direct Deposit Cons Payroll Card Pros: Cons

When you are finished Turn in your test Get a Depository Institution Discovery Handout Read it and answer the questions in the text.

Journal Today on my test I __________________ My favorite part of this unit was__________ I will use the information I learned in this unit when I __________________

Agenda Get a graphic organizer Watch the video While you are watching the video, be sure to complete the graphic organizer. You will get a process grade for it. Watch the video by clicking the link below. https://www.youtube.com/watch?v=o4iYWixBLIM