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Microsoft Word - Understanding Your Paycheck Essentials Lesson Plan 7.13.2

Understanding Your Paycheck Essentials

Name Date

Class

Employment Forms

What is the purpose of the Form W-4?

How does a Form W-4 relate to income taxes?

What are taxes?

What is the largest category of taxes citizens pay?

What is an item or service that you use every day that is paid for by taxes?

Illustrate how

employers determine how much money to withhold from an

employees paycheck to pay federal income tax.

Amount of federal income tax withheld from paycheck

What is the Form I-9?

Payment Methods

Advantages:

What is a paper paycheck? Characteristics:

Disadvantages

Advantages:

What is direct deposit?

Characteristics:

Disadvantages

Advantages:

What is a payroll card?

Characteristics:

Disadvantages

Which payment method would work best for you?What is a pay period?

Reading a Paycheck Stub

Summarize each section of the paycheck stub below.

Personal Information

Pay Period

Gross Income

Net Income

Payroll Withholdings

Federal Withholding

Tax

State Withholding Tax

FICA

Social Security

Medicare

Retirement Plan

Medical

Year-to-Date

7.13.2.A2

Worksheet

Advantages and Disadvantages of

Payment Methods

Paper Paycheck

Direct Deposit

Payroll Cards

Family Economics & Financial Education October 2010 The Essentials to Take Charge of Your Finances Understanding Your Paycheck Essentials Page 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

Sample Paycheck Stub

7.13.2.E1

Resource

On-The-Go

Employee

Beakens, Joe

Employee Identification

201-92-4856

Check #

164

Check Amount

$1,102.98

Employee Address

293 Michael Grove

Billings, MT 59102

Pay Type- Gross Pay

Deductions

Current

Year-to-date

$1,353.33

Federal Withholding

State Withholding

Fed OASDI/EE or Social

Security

Fed MED/EE or Medicare

Medical

401K

$106.00

$40.82

$83.91

$19.62

$0.00

$0.00

$503.46

$117.72

$636.00

$244.92

$0.00

$0.00

Totals

$250.35

$1,502.10

Pay Period 6/11/2004-7/11/2004

Family Economics & Financial Education October 2010 The Essentials to Take Charge of Your Finances Understanding Your Paycheck Essentials Page 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