KEEPING YOUR JOB

1
KEEPING YOUR JOB

• Chapter 5 Notes
• Money Management

2
Understanding and Preparing Work Forms

• When you begin your first paying job, you will
  need to be aware of a number of forms.
• Most of these forms ask for information that
  employers are required by law to keep.
• Some are completed before you can start work
  (Social Security Card and work permit, if you are
  under 16), while others are completed when you
  begin working (W-4) and by the employer after you
  have worked during the year (W-2).
• You should be familiar with these forms!

3
FORM W-4

• When you report to work you will be asked to fill
  out a FORM W-4, Employees Withholding Allowance
  Certificate.
• The information you put on this form will
  determine the amount of money your employer will
  deduct from your check for income taxes.
• On this form you declare your total number of
  allowances persons claimed that reduce the
  amount of tax withheld from your paycheck.
• The more allowances you claim, the less tax you
  will have withheld.
• You may automatically claim yourself other
  allowances can be made for spouse and children.

4
HOW MANY ALLOWANCES DO I CLAIM

• Most students either claim EXEMPT or 0 under
  allowances. Some choose to claim 1 if they are
  paying their own way.
• Exempt Status means that you DO NOT have to
  have ANY federal income tax withheld from your
  check.
• Who can claim exempt?
• You cannot claim exemption from federal
  withholding taxes for 2007
• If your income exceeds 900 and includes more
  than 300 of unearned income (interest and
  dividends), and another person can claim you as a
  dependent on their return.
• If you are exempt from federal withholding taxes,
  you must certify on the W-4 form that you meet
  both of the following conditions
• Last year you had a right to a refund of ALL
  federal income withholding because you had no
  liability, and this year you expect a refund of
  ALL federal income withheld because you expect to
  have no tax liability
• Exemptions expire each year so new W-4s have to
  be filed.

5
Social Security

• Because all workers in the U.S. must pay a social
  security tax from wages earned, all have a social
  security number. Your social security number is
  your permanent work identification number.
• While you are working, your employers withhold
  social security taxes from your pay and
  contribute matching amounts. When you become
  eligible, benefits are paid to you.
• Children born in the U.S. must have number before
  they are one if their parents would like to claim
  them as a dependent on their tax return.
• If your card is lost or damaged, you can order a
  replacement card.
• The Social Security Administration sends
  statements out each year updating you on your
  total contributions into the system.
• Your Social Security Statement is a concise,
  easy-to-read personal record of the earnings on
  which you have paid Social Security taxes during
  your working years and a summary of the estimated
  benefits you and your family may receive as a
  result of those earnings.
• Click on this link for a calculator that will
  help you estimate your retirement benefit!
  http//www.ssa.gov/OACT/quickcalc/

6
How does Social Security Work?

• Social Security Defined
• A social insurance program that covers most of
  the Nation's work force. It is often the basic
  retirement plan to which other benefits are
  added. It provides retirement, disability,
  survivor, and Medicare benefits.
• The money you pay into the system gets
  immediately paid back out to the people who are
  currently getting Social Security checks
• In 1935, when Social Security started, there were
  many more people paying into the system than
  those receiving benefits. The ratio of workers to
  retirees meant that workers did not have to pay
  much into the system in 1935 to support the
  retirees
• In the future, the retirement of millions of baby
  boomers will hurt the ratio -- there will be so
  many retired people that the working people will
  not be able to support them.
• Social Security is a BIG part of a lot of
  peoples retirement plans so how much trouble is
  the program really in? Will it be there for you
  when you retire? That is up for a ton of debate.
  Pay attention and youll see news stories on it
  each and every week!

7
Social Security in the news!

• For example, lets check out the type of news
  clips you can expect to see in the news
• http//www.msnbc.msn.com/id/6840592/
• http//www.msnbc.msn.com/id/7725312/
• Example of Political Debate about Social
  Security http//youtu.be/g-HlSXQoyl8
• ASSIGNMENT
• Go online and find a current article from a
  reputable news source (For example Newsweek,
  CNN, MSNBC) that does at least one of the
  following
• Explains the basics about social security
• Talks about Social Security reform
• Discusses whether or not Social Security is
  really in trouble
• Discusses the current political debate about
  social security
• Print the article, read it underlining or
  highlighting the key points.
• Open up Microsoft Word. Also, open up the Social
  Security Article Review Assignment in the
  Chapter 5 folder. Write a two to three paragraph
  response summarizing the article and giving me
  your opinions on the topic discussed.

8
FORM W-2

• Form W-2 lists income you earned during the year
  and all the amounts withheld by the employer on
  your behalf. These amounts include federal,
  state, and local income taxes, the social
  security tax.
• An example W-2 Form can be seen at the following
  links http//www.irs.gov/pub/irs-pdf/fw2.pdf
• http//www.classroomtools.com/tax_w2.htm
• Your employer MUST provide you with a copy of
  your W-2 no later than January 31st of the year
  following the one in which you were employed
  even if you only worked part of the year! If they
  dont send you one... Contact them!
• Once employees receive their W-2s, they can
  compare how much they paid in federal income tax
  to how much they were supposed to pay in federal
  income tax. It is then easy to determine if the
  employee owes more or if they have a refund due
  to them!
• Employees have until April 15th each year to file
  their tax returns to either pay up or request
  their refund!

9
Tax Fraud

• Before you file your return, you have to make
  sure you declare ALL OF YOUR INCOME! One of the
  most common forms of tax fraud is the
  underreporting of tips!
• Tax Fraud Fraud is a deception deliberately
  practiced in order to secure unfair or unlawful
  gain. As it relates to taxes, it's simply
  "cheating" by intentionally paying less tax than
  is legally due. Here are some examples
• Deliberately underreporting or omitting income,
• Overstating the amount of deductions
• Keeping two sets of books
• Making false entries in books and records
• Claiming personal expenses as business expenses
• Claiming false deductions

10
Employee Responsibilities to Employers

• Competent Work
• Thrift
• Punctuality
• Pleasant Attitude
• Loyalty and Respect
• Dependability
• Initiative
• Interest
• Self-Evaluation

11
Responsibilities to Other Employees and Customers

• Other Employees
• Teamwork
• Thoughtfulness
• Loyalty
• To Customers
• Helpfulness
• Courtesy

12
Employers Responsibilities

• Adequate Supervision
• Fair Personnel Policies
• Safe Working Conditions
• Open Channels of Communication
• Recognition of achievement
• Compliance with employment laws

13
EMPLOYMENT LAWS

• In the last fifty years, many laws have been
  passed to provide protections to American
  workers.
• Department of Labor is in charge of the biggies
• Minimum Wage, regular working hours, equal
  opportunities, no discrimination, safe working
  conditions etc....
• Some laws you should be aware of
• Social Security Act (Federal Insurance
  Contributions Act of 1935)
• Enacted as a social insurance program to provide
  aide to the elderly and disabled.
• Medicare was added to this act in 1965. It
  provided hospital and medical insurance
  protections for elderly retired persons and other
  qualified persons.

14
EMPLOYMENT LAWS

• Unemployment Compensation important part of the
  Social Security Act provides that every state
  must have an unemployment insurance program that
  provides benefits to workers who lose their job
  through no fault of their own.
• After a waiting period, laid-off workers may
  collect a portion of their regular pay for a
  certain length of time.
• Fair Labor Standards Act popularly known as the
  Wage and Hour act... Set the minimum wage
  (initially at 25 cents/hour ?).
• A minimum wage is the legally established lower
  limit on wage employers must pay. The federal
  minimum wage currently at 7.25.
• Another provision of the act states that hourly
  workers cannot be employed for more than 40 hours
  in a week without paying them overtime. Employers
  must pay the employees 1 ½ times their regular
  rate for any such hours.
• Minimum wage law has some exceptions... Jobs with
  tips is an example.
• US Department of Labor Overtime Laws
  http//www.dol.gov/dol/topic/wages/overtimepay.htm
  
• Workers Compensation the name for laws that
  give financial security to workers and their
  families for injury, illness, loss of income, or
  death that occurs as a result of the job or
  working conditions.
• Liability without fault employers are liable
  even if it wasnt their fault.