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WAGES  Hourly pay  Anything over 40 hours must be paid overtime (time and a half) SALARIES  Annual pay  Get paid the same regardless of how many hours you work

GROSS PAY  How much you make BEFORE taxes and other deductions are taken out NET PAY  How much you make AFTER taxes and other deductions are taken out

DeductionWhat do you get?Who pays? Federal Income Tax State Income Tax FICA: Social Security FICA: Medicare Pays for services provided by federal government Pays for services provided by state government (not all state have, but NC does) Provides for old-age, survivors, and disability insurance Provides hospital insurance for the elderly Employee; Amount taken is based on pay and W-4 Employee and Employer

DeductionWhat do you get? Life Insurance Short or Long- term Disability Medical Insurance Dental and Vision Insurance Retirement Savings Plan Pays a beneficiary in the event that an employee dies Provides benefits in the event that an employee is completely disabled Provides employee and family with medical care including hospitalization, doctor visits, etc. Provides employee and family with dental or vision coverage for check-ups and procedures Savings for retirement, most commonly called a 401k

Financial InstitutionDescription Commercial Bank Credit Union Savings & Loan Association Brokerage Firm Typical bank that offers checking, savings, and credit accounts – ex: Wells Fargo Member owned cooperative, has same type of accounts as commercial but usually with better rates – ex: SECU Today offer most types of accounts but specialize in saving and mortgage loans Specialize in buying and selling stocks.

 Checking Account o Used for daily transactions, money flows in and out often  Savings Account o Used for saving money o Money can be withdrawn anytime o Interest is given to increase money in account  CDs (Certificate of Deposits) o aka – Time Deposit o Money saved for a certain period of time o Receives a higher interest rate

 Making a Deposit o To make a deposit into your checking or savings account you must fill out a deposit slip PRACTICE: Deposit check #123 for $300 and receive $75 back in cash.

 Withdrawing Money o Can be done in person at the bank with a withdrawal form or at an ATM PRACTICE: Withdrawal $100 from account number

 Spending Money o Today this can usually be done by using a debit card attached to the account o Checks can also be written, these are mostly used for payments to people or for bills PRACTICE: Write a check for $ to the U.S. Department of Education

 Keeping Track of Your Account o It is INCREDIBLY important that you keep up with the transactions (deposits, withdrawals, and spending) of your checking account o Banks today offer online banking to help you with this but this is NOT always reliable because transactions can take a while to process so your account may have more/less than the online banking says o Due to this, it is important to ALWAYS keep a paper record of transactions in your check register o Each month you will receive a statement of the previous month’s activities. ALWAYS balance your checkbook and look for any mistakes you may have made.

 Starting balance: $  Deposit on 12/2: $54.96  ATM Withdrawal on 12/4: $20.00  Debit Card Purchase on 12/5: Food Lion for $  Bill Payment on 12/9: Check #149 to Time Warner Cable for $183.15