Money Management

1
Money Management

• 6.1
• Examination of Paycheck and Benefits
• Preparing your income tax
• Checking account

2
Employee Pay and Benefits

• Gross Pay
• Total amount you earn before any deductions are
  subtracted
• Net Pay
• When all deductions are taken out of your gross
  pay, the amount left is your Net Pay

3
Benefits besides Paychecks

• Profit Sharing
• Paid vacations
• Employee services
• Child Care
• Sick Pay

• Insurance Coverage
• Bonuses and Stock Options
• Pensions and Savings plans
• Travel Expenses

4
Your Paycheck

• Weekly, biweekly, or monthly
• Hourly Wages
• Overtime
• Salary

5
Hourly and Overtime

• 8.25 / hour
• 40 hours/ week
• Gross pay equals?
• 8.25/ hour
• 62 hours/ week
• Gross pay equals?

6
Salary

• Stated in annual amount
• 50,000
• 52 weeks in a year/ 2weeks per pay period 26 pay
  periods
• 50,000/ 26 pay periods ?

7
Your Paycheck

• Deductions
• Amounts subtracted from your wages
• Required deductions
• Income Tax
• Social Security Taxes Medicare Taxes
• Optional Deductions
• Insurance
• Donations
• Savings Plan
• Car Insurance

8
Paycheck

• Show paycheck on page 120

9
Required Deductions

• Federal, State, and Local Taxes
• Social Security Taxes
• Medicare Taxes

10
Required Deductions

• State Taxes
• Show page 122 and 123
• Federal Taxes
• Show page 124
• Local Taxes
• Depends on what city you live in
• Social Security (6.2 X Gross Pay)
• Medicare (1.45 X Gross Pay)

11
Self Employed

• Do not have deductions from paycheck
• File tax returns
• Estimated amounts
• Quarterly
• Estimate and divide by 4

12
Self Employed

• Social Security tax
• Medicare Tax
• Pay Double b/c they are Employee and Employer

13
Self Employed

• Social Security
• 12.4 (6.2 x 2)
• Medicare
• 2.9 (1.45 x 2)
• Total Self-Employment Tax (15.3)
• Self-Employment Tax- the total social security
  and Medicare tax, including employer matching
  contributions

14
Practice

• Workbook pages
• 53-57