keeping your job and employee pay benefits
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Keeping Your Job and Employee Pay Benefits. B ecoming Employed. W-4 Form. Employee’s Withholding Allowance Certificate Determines the amount of money your employer will deduct from your check for income taxes Must declare allowances or persons claimed - PowerPoint PPT PresentationTRANSCRIPT
Keeping Your Joband
Employee Pay Benefits
Becoming Employed
W-4 Form Employee’s Withholding Allowance
Certificate› Determines the amount of money your
employer will deduct from your check for income taxes
› Must declare allowances or persons claimed The more claimed—less taxes are taken from
check
Social Security Your personal identification number
› Be careful to whom you give it to As a tax
› Both employee and employer contribute› The amount contributed throughout
lifetime will be returned at retirement.
W-2 Form Wage and Tax Statement
› Shows income earned during the year and all withheld amounts
› Employer must provide copy to employee by January 31
› Used to figure income taxes
Employment Laws
Social Security Act Enacted to provide federal aid for
elderly and disabled. FICA = Social Security Tax
FYI….in 2010, 54 million people were receiving Social Security benefits, while 157 million people were paying into the fund; of those receiving benefits, 44 million were receiving retirement benefits and 10 million disability benefits
Unemployment Compensation
Provides benefits to workers who lose their jobs though no fault of their own.
Have to be actively looking for a job Can receive compensation for 26
consecutive weeks.
Fair Labor Standards Act Aka Wage and Hour Act 1938 Established minimum wage Federal Minimum wage – State Minimum wage -
FYI…. In 1966, the minimum wage was $1.60.
Gross Pay Total or agreed upon rate of pay before
deductions
Hourly Wages When employee is paid for every hour
worked
Overtime Full time hourly workers cannot work
over 40 hours a week without being paid overtime› Overtime rate is normally 1 1/2 times
regular rate of pay
Monthly Salary Paid set amount per month Doesn’t matter how many hours
worked No overtime paid unless agreed upon
Annual Pay Set pay for year divided into equal
amounts Overtime usually not paid
Pay Periods Monthly – once a month
› 12 pay periods Biweekly – every two weeks
› 26 pay periods Semiweekly – two times a month
› 24 pay periods Weekly – every week
› 52 pay periods Which is best???
Deductions Subtracted from gross pay Examples of required deductions
› Social security tax› Federal and state income tax
Examples of optional deductions› Insurance --Retirement› Savings accounts --loan
payments› Charity
Net Pay Also known as Take Home Pay Gross pay minus deductions
Employee Withholding Sheet
Required by law that explanation of pay computations be provided with each paycheck.
ie..check stub
Benefits and Incentives Insurance Profit sharing Paid vacations Paid holidays Sick pay Bonuses Savings plans Travel expenses
Employee Services› Discounts› Rec programs› Tuition
reimbursement› Free parking
Family Medical Leave Act 1993 Employers with 50 or more employees
must give up to 12 weeks unpaid leave per year for:› Birth or adoption› Care for spouse, parent, child with illness› Own illness
Labor Unions Main function is to recruit new
members Not as strong as they have been in the
past
Collective Bargaining Process of negotiating terms of
employment for union members
Strike When union members refuse to work
until agreement is reached
Professional Organization Associations for professionals that
establish professional standards Conferences offered Keep members up to date