Keeping Your JobKeeping Your Jobandand

Employee Pay BenefitsEmployee Pay Benefits

Becoming EmployedBecoming Employed

W-4 FormW-4 Form

Employee’s Withholding Allowance Employee’s Withholding Allowance CertificateCertificate– Determines the amount of money your Determines the amount of money your

employer will deduct from your check for employer will deduct from your check for income taxesincome taxes

– Must declare allowances or persons claimedMust declare allowances or persons claimedThe more claimed—less taxes are taken from The more claimed—less taxes are taken from checkcheck

Social SecuritySocial Security

Your personal identification numberYour personal identification number– Be careful to whom you give it toBe careful to whom you give it to

As a taxAs a tax– Both employee and employer contributeBoth employee and employer contribute– The amount contributed throughout lifetime The amount contributed throughout lifetime

will be returned at retirement.will be returned at retirement.

W-2 FormW-2 Form

Wage and Tax StatementWage and Tax Statement– Shows income earned during the year and all Shows income earned during the year and all

withheld amountswithheld amounts– Employer must provide copy to employee by Employer must provide copy to employee by

January 31January 31– Used to figure income taxesUsed to figure income taxes

Employment LawsEmployment Laws

Social Security ActSocial Security Act

Enacted to provide federal aid for elderly Enacted to provide federal aid for elderly and disabled.and disabled.

FICA = Social Security TaxFICA = 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 CompensationUnemployment Compensation

Provides benefits to workers who lose Provides benefits to workers who lose their jobs though no fault of their own.their jobs though no fault of their own.

Have to be actively looking for a jobHave to be actively looking for a job

Can receive compensation for 26 Can receive compensation for 26 consecutive weeks.consecutive weeks.

Fair Labor Standards ActFair Labor Standards Act

Aka Wage and Hour ActAka Wage and Hour Act19381938Established minimum wageEstablished minimum wageFederal Minimum wage –Federal Minimum wage –State Minimum wage - State Minimum wage -

FYI…. In 1966, the minimum wage was FYI…. In 1966, the minimum wage was $1.60.$1.60.

Gross PayGross Pay

Total or agreed upon rate of pay before Total or agreed upon rate of pay before deductionsdeductions

Hourly WagesHourly Wages

When employee is paid for every hour When employee is paid for every hour workedworked

OvertimeOvertime

Full time hourly workers cannot work over Full time hourly workers cannot work over 40 hours a week without being paid 40 hours a week without being paid overtimeovertime– Overtime rate is normally 1 1/2 times regular Overtime rate is normally 1 1/2 times regular

rate of payrate of pay

Monthly SalaryMonthly Salary

Paid set amount per monthPaid set amount per month

Doesn’t matter how many hours workedDoesn’t matter how many hours worked

No overtime paid unless agreed uponNo overtime paid unless agreed upon

Annual PayAnnual Pay

Set pay for year divided into equal Set pay for year divided into equal amountsamounts

Overtime usually not paidOvertime usually not paid

Pay PeriodsPay Periods

Monthly – once a monthMonthly – once a month– 12 pay periods12 pay periods

Biweekly – every two weeksBiweekly – every two weeks– 26 pay periods26 pay periods

Semimonthly – two times a monthSemimonthly – two times a month– 24 pay periods24 pay periods

Weekly – every weekWeekly – every week– 52 pay periods52 pay periods

Which is best???Which is best???

DeductionsDeductions

Subtracted from gross paySubtracted from gross pay

Examples of required deductionsExamples of required deductions– Social security taxSocial security tax– Federal and state income taxFederal and state income tax

Examples of optional deductionsExamples of optional deductions– InsuranceInsurance --Retirement--Retirement– Savings accountsSavings accounts --loan payments--loan payments– CharityCharity

Net PayNet Pay

Also known as Take Home PayAlso known as Take Home Pay

Gross pay minus deductionsGross pay minus deductions

Employee Withholding SheetEmployee Withholding Sheet

Required by law that explanation of pay Required by law that explanation of pay computations be provided with each computations be provided with each paycheck.paycheck.

ie..check stubie..check stub

Benefits and IncentivesBenefits and Incentives

Insurance Insurance

Profit sharingProfit sharing

Paid vacationsPaid vacations

Paid holidaysPaid holidays

Sick paySick pay

BonusesBonuses

Savings plansSavings plans

Travel expensesTravel expenses

Employee ServicesEmployee Services– DiscountsDiscounts– Rec programsRec programs– Tuition reimbursementTuition reimbursement– Free parkingFree parking

Family Medical Leave ActFamily Medical Leave Act

19931993

Employers with 50 or more employees Employers with 50 or more employees must give up to 12 weeks unpaid leave per must give up to 12 weeks unpaid leave per year for:year for:– Birth or adoptionBirth or adoption– Care for spouse, parent, child with illnessCare for spouse, parent, child with illness– Own illnessOwn illness

Labor UnionsLabor Unions

Main function is to recruit new membersMain function is to recruit new members

Not as strong as they have been in the Not as strong as they have been in the pastpast

Collective BargainingCollective Bargaining

Process of negotiating terms of Process of negotiating terms of employment for union membersemployment for union members

StrikeStrike

When union members refuse to work until When union members refuse to work until agreement is reachedagreement is reached

Professional OrganizationProfessional Organization

Associations for professionals that Associations for professionals that establish professional standardsestablish professional standards

Conferences offeredConferences offered

Keep members up to dateKeep members up to date