NOTE: To change the image on this slide, select the picture and delete it. Then click the Pictures icon in the placeholder to insert your own image. Getting Paid Advanced Level

2.3.9.G1 © Take Charge Today –August2013 – Getting Paid– Slide 2 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona What are the two primary sources of employment? Self-employed _____ and pay _____ differently Employed by an _______ What sources of employment do your family members have?

2.3.9.G1 © Take Charge Today –August2013 – Getting Paid– Slide 3 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona Salary vs. Hourly Salary Set amount of ______ Not dependent on the specific number of _____ _________ Example: $30,000/year Hourly wage Earn a ______ rate for every _____ worked Example: $16.00/hour Minimum wage – Federal and state Would you rather be paid a salary or hourly wage?

2.3.9.G1 © Take Charge Today –August2013 – Getting Paid– Slide 4 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona What methods do employers use to pay employees? _______ ________ _________ _______

2.3.9.G1 © Take Charge Today –August2013 – Getting Paid– Slide 5 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona Paper Paycheck and Direct Deposit Paper paycheck Access funds by ______ or ________ a check Direct deposit Wages deposited ______ to _____ institution account

2.3.9.G1 © Take Charge Today –August2013 – Getting Paid– Slide 6 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona Payroll Card Payroll card Functions similar to a _____ card, except not linked to employee’s personal account Wages electronically _________ each payday ______ are common What method of payment would be best for you?

2.3.9.G1 © Take Charge Today –August2013 – Getting Paid– Slide 7 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona Payroll deductions Gross ______ - amount of money earned before payroll _____ ________ Net ______ – take home pay MandatoryOptional

2.3.9.G1 © Take Charge Today –August2013 – Getting Paid– Slide 8 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona What are the five main types of taxes? ______ _______ ____ _____ Withheld from wages

2.3.9.G1 © Take Charge Today –August2013 – Getting Paid– Slide 9 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona Why are income and payroll taxes deducted from wages? Helps manage ___ _________on an ongoing basis (total tax bill) Payroll deduction Beginning of year End of year – total tax liability due

2.3.9.G1 © Take Charge Today –August2013 – Getting Paid– Slide 10 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona What are the mandatory income and payroll tax deductions? Income ______ income tax _____ income tax Payroll _____ Security ________

2.3.9.G1 © Take Charge Today –August2013 – Getting Paid– Slide 11 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona Federal Income Tax Largest required deduction Amount of money ______ Information on Form _____ Amount ________ How do you benefit from paying federal income taxes?

2.3.9.G1 © Take Charge Today –August2013 – Getting Paid– Slide 12 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona What is a Form W-4? Determines the percentage pay that will be deducted for federal income taxes Marital ______ Number of _________ Determines the ________ of pay that will be deducted for _______ income taxes

2.3.9.G1 © Take Charge Today –August2013 – Getting Paid– Slide 13 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona Form W-4 Allowances Allowance May claim an allowance only ____________ __ that person as a dependent Dependent - person who _____ on the taxpayer for financial support Qualifying _____ Qualifying _____ relative Rule of thumb = may (but not required) claim an allowance for ______ dependent

2.3.9.G1 © Take Charge Today –August2013 – Getting Paid– Slide 14 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona Allowances Number of allowances ______ Federal ______ tax deducted Federal income tax _______ Individuals may change their Form W-4 at any time

2.3.9.G1 © Take Charge Today –August2013 – Getting Paid– Slide 15 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona State Income Tax Not all states have ______ income tax Amount deducted _____ between states Does your state have state income tax?

2.3.9.G1 © Take Charge Today –August2013 – Getting Paid– Slide 16 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona What is Social Security? Provides Tax deducted from wages Income for: o _________ o People with profound __________ o Children who have lost a ________ o A person with children who has experienced the ______ of a spouse ______ Up to an annual maximum Paid by each worker and ______ by employer

2.3.9.G1 © Take Charge Today –August2013 – Getting Paid– Slide 17 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona What is Medicare? Provides Tax deducted from wages Helps pay for ______ care for individuals ___ and older _______ No limit Paid by each worker and ________ by each employer

2.3.9.G1 © Take Charge Today –August2013 – Getting Paid– Slide 18 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona What are optional payroll deductions? Employee ________ – products or services that add extra value for employees beyond wages earned Employee’s portion of the cost is deducted __________ _____________ _______________ Employee will typically pay much less than privately purchasing that same benefit.

2.3.9.G1 © Take Charge Today –August2013 – Getting Paid– Slide 19 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona How Employers Further Support Employees Workers’ compensation Helps pay ____________if you are injured on the job Unemployment insurance You can receive this if you ___________due to no fault of your own Both required at no cost to the employee

2.3.9.G1 © Take Charge Today –August2013 – Getting Paid– Slide 20 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona How Employers Further Support Employees Paid or unpaid days for ______, _______, _______ Match contributions to ___________and ________

2.3.9.G1 © Take Charge Today –August2013 – Getting Paid– Slide 21 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona What is a pay stub? Pay stub - outlines the _______ made to wages Why is it important to review your __________? Employee InformationPay Date: 6/11/2013 Name Identification Number AddressPay Rate Pay Period Joe Beakens Michael Grove $ /1 – 5/31/2013 Summary Gross Income Total Personal Deductions Net Income Current$2,400.00$747.00$1, YTD$12,000.00$3,735.00$8, Earnings TypeRateHoursCurrentYTD Regular$ $2,400.00$12, Overtime0000 Deductions TypePersonal DeductionEmployer Contribution Federal income tax$ State income tax $ Social Security and Medicare$ Retirement plan$ Health insurance$100.00$ Workers’ compensation0$13.80 Unemployment insurance0$6.26 Employee Leave Balances Type Beginning balance current Beginning balance YTD Used Current Used YTD Ending Balance Personal Sick55005

2.3.9.G1 © Take Charge Today –August2013 – Getting Paid– Slide 22 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona Pay Stub Standard Employee Information _______ __________ ______________ Employee InformationPay Date: 6/11/2013 Name Identification Number AddressPay Rate Pay Period Joe Beakens Michael Grove $ /1 – 5/31/2013 Summary Gross Income Total Personal Deductions Net Income Current$2,400.00$747.00$1, YTD$12,000.00$3,735.00$8, Earnings TypeRateHoursCurrentYTD Regular$ $2,400.00$12, Overtime0000 Deductions TypePersonal DeductionEmployer Contribution Federal income tax$ State income tax $ Social Security and Medicare$ Retirement plan$ Health insurance$100.00$ Workers’ compensation0$13.80 Unemployment insurance0$6.26 Employee Leave Balances Type Beginning balance current Beginning balance YTD Used Current Used YTD Ending Balance Personal Sick55005

2.3.9.G1 © Take Charge Today –August2013 – Getting Paid– Slide 23 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona Pay Stub Pay Period Regular schedule that __________employees Weekly, ________, bi- monthly, or ________ Employee InformationPay Date: 6/11/2013 Name Identification Number AddressPay Rate Pay Period Joe Beakens Michael Grove $ /1 – 5/31/2013 Summary Gross Income Total Personal Deductions Net Income Current$2,400.00$747.00$1, YTD$12,000.00$3,735.00$8, Earnings TypeRateHoursCurrentYTD Regular$ $2,400.00$12, Overtime0000 Deductions TypePersonal DeductionEmployer Contribution Federal income tax$ State income tax $ Social Security and Medicare$ Retirement plan$ Health insurance$100.00$ Workers’ compensation0$13.80 Unemployment insurance0$6.26 Employee Leave Balances Type Beginning balance current Beginning balance YTD Used Current Used YTD Ending Balance Personal Sick55005 Why is the pay period different than the pay date?

2.3.9.G1 © Take Charge Today –August2013 – Getting Paid– Slide 24 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona Pay Stub _____________ _______________ CurrentYear-to-date (YTD) Amount this _____ period Amount from _______ 1 to last day of _______ pay period Employee InformationPay Date: 6/11/2013 Name Identification Number AddressPay Rate Pay Period Joe Beakens Michael Grove $ /1 – 5/31/2013 Summary Gross Income Total Personal Deductions Net Income Current$2,400.00$747.00$1, YTD$12,000.00$3,735.00$8, Earnings TypeRateHoursCurrentYTD Regular$ $2,400.00$12, Overtime0000 Deductions TypePersonal DeductionEmployer Contribution Federal income tax$ State income tax $ Social Security and Medicare$ Retirement plan$ Health insurance$100.00$ Workers’ compensation0$13.80 Unemployment insurance0$6.26 Employee Leave Balances Type Beginning balance current Beginning balance YTD Used Current Used YTD Ending Balance Personal Sick55005

2.3.9.G1 © Take Charge Today –August2013 – Getting Paid– Slide 25 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona Pay Stub Earnings How ______ were ________ May show _____ and ____ Employee InformationPay Date: 6/11/2013 Name Identification Number AddressPay Rate Pay Period Joe Beakens Michael Grove $ /1 – 5/31/2013 Summary Gross Income Total Personal Deductions Net Income Current$2,400.00$747.00$1, YTD$12,000.00$3,735.00$8, Earnings TypeRateHoursCurrentYTD Regular$ $2,400.00$12, Overtime0000 Deductions TypePersonal DeductionEmployer Contribution Federal income tax$ State income tax $ Social Security and Medicare$ Retirement plan$ Health insurance$100.00$ Workers’ compensation0$13.80 Unemployment insurance0$6.26 Employee Leave Balances Type Beginning balance current Beginning balance YTD Used Current Used YTD Ending Balance Personal Sick55005

2.3.9.G1 © Take Charge Today –August2013 – Getting Paid– Slide 26 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona Pay Stub ____________ All deductions from _____ ________ What are examples of deductions? Employee InformationPay Date: 6/11/2013 Name Identification Number AddressPay Rate Pay Period Joe Beakens Michael Grove $ /1 – 5/31/2013 Summary Gross Income Total Personal Deductions Net Income Current$2,400.00$747.00$1, YTD$12,000.00$3,735.00$8, Earnings TypeRateHoursCurrentYTD Regular$ $2,400.00$12, Overtime0000 Deductions TypePersonal DeductionEmployer Contribution Federal income tax$ State income tax $ Social Security and Medicare$ Retirement plan$ Health insurance$100.00$ Workers’ compensation0$13.80 Unemployment insurance0$6.26 Employee Leave Balances Type Beginning balance current Beginning balance YTD Used Current Used YTD Ending Balance Personal Sick55005

2.3.9.G1 © Take Charge Today –August2013 – Getting Paid– Slide 27 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona Pay Stub Amount the employer has _______ to various employee ______ and other __________. Employer ________ What contributions are included? Employee InformationPay Date: 6/11/2013 Name Identification Number AddressPay Rate Pay Period Joe Beakens Michael Grove $ /1 – 5/31/2013 Summary Gross Income Total Personal Deductions Net Income Current$2,400.00$747.00$1, YTD$12,000.00$3,735.00$8, Earnings TypeRateHoursCurrentYTD Regular$ $2,400.00$12, Overtime0000 Deductions TypePersonal DeductionEmployer Contribution Federal income tax$ State income tax $ Social Security and Medicare$ Retirement plan$ Health insurance$100.00$ Workers’ compensation0$13.80 Unemployment insurance0$6.26 Employee Leave Balances Type Beginning balance current Beginning balance YTD Used Current Used YTD Ending Balance Personal Sick55005

2.3.9.G1 © Take Charge Today –August2013 – Getting Paid– Slide 28 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona Pay Stub _____ Leave _____ Summary of the employee’s leave _____ ____________________ Employee InformationPay Date: 6/11/2013 Name Identification Number AddressPay Rate Pay Period Joe Beakens Michael Grove $ /1 – 5/31/2013 Summary Gross Income Total Personal Deductions Net Income Current$2,400.00$747.00$1, YTD$12,000.00$3,735.00$8, Earnings TypeRateHoursCurrentYTD Regular$ $2,400.00$12, Overtime0000 Deductions TypePersonal DeductionEmployer Contribution Federal income tax$ State income tax $ Social Security and Medicare$ Retirement plan$ Health insurance$100.00$ Workers’ compensation0$13.80 Unemployment insurance0$6.26 Employee Leave Balances Type Beginning balance current Beginning balance YTD Used Current Used YTD Ending Balance Personal Sick55005

2.3.9.G1 © Take Charge Today –August2013 – Getting Paid– Slide 29 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona Can an employer pay employees cash? If taxes are not deducted from your wages you: Are not managing your ___ __________ Will be responsible for _____ the amount of money made and paying those taxes Are probably not receiving worker’s _______ and _______________ insurance coverage Ensure employer is deducting income and payroll taxes from wages paid in cash Consult a tax professional to determine if you should pay taxes on cash earned.

2.3.9.G1 © Take Charge Today –August2013 – Getting Paid– Slide 30 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona Summary Employers make deductions to ______ (outlined on the pay stub) Deducting ______ and ______ taxes on a “pay as you go” system helps manage tax liability Being employed provides additional benefits beyond _____ earned Employers are required to pay _________ insurance and _________ compensation Employers may offer employee ______ that ______ the employee money