wages hourly pay anything over 40 hours must be paid overtime (time and a half) salaries annual...
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Your PayWAGES
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
Your PayGROSS 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
Mandatory Deductions
Deduction
What do you get? Who pays?
Federal Income TaxState Income TaxFICA: Social SecurityFICA: 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
Other Deductions
Deduction What 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 diesProvides 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 proceduresSavings for retirement, most commonly called a 401k
Where should you put your money?
Financial Institution Description
Commercial Bank
Credit Union
Savings & Loan AssociationBrokerage Firm
Typical bank that offers checking, savings, and credit accounts – ex: Wells FargoMember 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 loansSpecialize in buying and selling stocks.
Deposit Services Checking Account
o Used for daily transactions, money flows in and out often
Savings Accounto Used for saving moneyo Money can be withdrawn anytimeo Interest is given to increase money in account
CDs (Certificate of Deposits)o aka – Time Deposito Money saved for a certain period of timeo Receives a higher interest rate
Managing Deposits and
Spending Making a Deposito 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.
Managing Deposits and
Spending Withdrawing Moneyo Can be done in person at the bank with a withdrawal
form or at an ATM
PRACTICE: Withdrawal $100 from account number 001336413
Managing Deposits and
Spending Spending Moneyo Today this can usually be done by using a debit card
attached to the accounto Checks can also be written, these are mostly used for
payments to people or for bills
PRACTICE: Write a check for $125.00 to
the U.S. Department of
Education
Managing Deposits and
Spending Keeping Track of Your Accounto 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.