KEEPING YOUR JOB Chapter 5 Notes Money Management

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KEEPING YOUR JOBChapter 5 NotesMoney Management

• 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).
• When you report to work you will be asked to fill
  out a ____________________________________
• 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
  _____________________________ persons claimed
  that reduce the amount of tax withheld from your
  paycheck.
• The more allowances you claim, the
  __________________________ you will have
  withheld.
• You may automatically claim yourself other
  allowances can be made for spouse and children.
• Most students either claim _______________________
  ___________________________ Some choose to claim
  1 if they are paying their own way.
• __________________________________ 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 2005
• If your income exceeds 800 and includes more
  than 250 of unearned income (interest and
  dividends), and another person can claim you as a
  dependent on their return.
• If you are ___________________________ 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 ________________________________
  ___ so new W-4s have to be filed.

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KEEPING YOUR JOBChapter 5 NotesMoney Management

• Because all workers in the U.S. must pay a social
  security tax from wages earned, all have a
  _____________________. Your social security
  number is your permanent work identification .
• While you are working, your employers withhold
  social security taxes from your pay and
  contribute __________________________________.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
  ____________________________________.
• The Social Security Administration sends
  statements out each year updating you on your
  total contributions into the system.
• Your ____________________________________________
  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.
  http//www.ssa.gov/mystatement/statsamples.htm
• Click on this link for a calculator that will
  help you estimate your retirement benefit!
  http//www.ssa.gov/OACT/quickcalc/
• __________________________________________________
  ___
• 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 ________________________
  _________________________________________.
• The money you pay into the system gets
  __________________________________________
  __________________________________________________
  ________________________.
• 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!
• For example, lets check out one snippet from the
  news...
• http//www.msnbc.msn.com/id/6840592/
• ASSIGNMENT Go online and find a current article
  from a reputable news source (For example
  Newsweek, CNN, MSNBC) that does 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

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Money Management Chapter 5 Notes Part Two

• 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 ______________________ 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...
  ________________________________!
• 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 ____________________________
  each year to file their tax returns to either pay
  up or request their refund! We will try that
  online in todays lesson!
• Tax Fraud
• Before you file your return, you have to make
  sure you declare _____________________________!
  One of the most common forms of tax fraud is the
  underreporting of ___________________________!
• ____________________ Fraud is a deception
  deliberately practiced in order to secure unfair
  or unlawful gain. As it relates to taxes, it's
  simply "cheating" by _____________________________
  __________________________________. Here are some
  examples
• __________________________________________________
  
• __________________________________________________
  
• __________________________________________________
  
• __________________________________________________
  
• __________________________________________________
  
• __________________________________________________
  

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Money Management Chapter 5 Notes Part Three

• Employee Responsibilities to Employers
• Competent Work
• Thrift
• Punctuality
• Pleasant Attitude
• Loyalty and Respect
• Dependability
• Initiative
• Interest
• Self-Evaluation
• Responsibilities to Other Employees and Customers
• Other Employees
• Teamwork
• Thoughtfulness
• Loyalty
• To Customers
• Helpfulness
• Courtesy
• Employers Responsibilities