*Understanding Paychecks

Understanding Paychecks
&
Using Banks

Understanding Paychecks:Do you know what these words mean?
•deposit –Put your paycheck in the bank.
•pay stub –describes earnings, hours you worked and deductions
•financial records -pay stubs, tax, insurance and car loan papers. Save financial
records 7 years.
•identity theft –Thieves may use your credit card or social security numbers to steal
your money.
•payroll secretary-follows rules to make sure correct taxes are removed from your
paycheck.
•net pay-your pay before taxes
•gross pay–after tax pay. This is what you take home.
•deduct-subtract
•deductions-Money subtracted from your paycheck for taxes or to help you.
•pay stub -a paper attached to your paycheck that shows how much tax is subtracted
from your income.
•Charity-Money to help people. Giving charity reduces your taxes.
•Retirement and 401K – money you will use when you are too old to work.
•Direct deposit-The payroll secretary will send your pay to the bank.
•Pay Yourself First!-Deduct money every pay day and save it!
•interest –Extra money the bank will pay you for saving money.
•FDIC –the government insures money in the bank to make it safe.

It's great to get a paycheck!

http://womeninbiz.sbresources.com/blog/images/money-into-air-image.jpg

http://www.themint.org/images/paycheck.gif


{ This is your
{ pay stub.

{ This is your
{ paycheck.


1. Deposit paychecks in the bank.


This is your pay stub.


hours x rate = pay
(how long you work) ($$ per hour)

2. Check your pay stub.
Make sure it is correct.

pay
earnings

wages
income

These words mean the same thing.


3. Save pay stubs in your personal financial
records.

http://startupblog.files.wordpress.com/2008/01/manila-envelope.jpg

4. Save pay stubs in your financial
records for seven years.

My Financial Records
January – December,
2012

Put papers about your
insurance
taxes
retirement/401-K
credit card
bank
car
in your Financial Records, too.

http://www.themint.org/images/paycheck.gif http://www.zdistrict.com/2008/05/09/the-shredder/

5. After seven years, shred old financial documents.

http://www.mortgagedaily.com/CoxWantedPoster081604.JPG

6. Don’t let strangers find your old pay stubs!

http://www.mortgagedaily.com/HauckWantedPoster081604.JPG

David Earl Williams Jr.

Violations: Bank fraud, 18 USC1344.
Case No.: 0596-1395657-MF(1)
NCIC No.: W095306743
FBI No.: 736099XA6
Warrant No.: 103M2272, 12/23/03, Middle District,North Carolina
Aliases: Kristian Williams, Chris William
DOB: February 23, 1978
Description: 5' 09", 160 lbs., black hair, brown eyes
Occupation: Corporate executive
Also wanted on multiple state warrants from Arkansas.

TAKE NO ACTION TO APPREHEND THIS PERSON YOURSELF

https://postalinspectors.uspis.gov/radDocs/wanted/razmilov.htm

Who prepares my pay check?

I am the Payroll Secretary.
7. In big companies, payroll
secretaries prepare paychecks.

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What is all of this about?

http://www.taxes.ca.gov/images/paystub.gif

gross pay

net pay


8. gross pay =
before tax pay

9. net pay =
after tax pay

What do these words mean?


before tax pay

after tax pay

10. Warning: Net pay is always less than gross pay!


These are tax
deductions.

11. No one takes home gross pay because
everyone must pay taxes.


These are tax
deductions.

How much money was
deducted from this
paycheck to pay taxes?


These are tax
deductions.

net pay

gross pay

12. deduct = subtract
Deductions are removed from
your paycheck to pay taxes.

In this world,
nothing is certain
except death and taxes.

How does the payroll secretary know
how much tax to deduct from my paycheck?

When you start working,
I’ll ask you to fill out a W-4 form.


http://www.myliferoi.com/wp-content/uploads/2009/02/3-taxesfornewgradsw4-b.jpg

13. The number you put on your W-4 form helps the Payroll
Secretary figure out the tax deductions on your paycheck.

14. Some deductions are not for taxes.
Some deductions benefit you.

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http://www.heritagepayroll.com/supfiles/images/PayCheck.jpg

http://www.fordham.edu/images/admin_offices/hr/administrator%20paystub%20image.jpg

15. Some deductions benefit your children.

16. You can deduct money for charity from your paycheck.

17. Contributing money to charity benefits you in two ways:

a. You choose how to help other people.

b. It reduces your taxes.

http://www.fordham.edu/images/admin_offices/hr/administrator%20paystub%20image.jpg

18. Some payroll secretaries can send your paycheck directly to your bank.
This is called direct deposit.

In January, the payroll secretary will give you a W-2 form
The W-2 shows how much taxes were deducted from your paycheck.

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http://www.osc.state.ny.us/payroll/images/w2_2008.jpg

19. April 15 is the deadline to pay taxes on your income.
Use your W-2 to prove that you already paid most of your taxes.
You will not have to pay these taxes again.

20. Saving money is very important!
Start saving as soon as you start a job!

Pay
Yourself
First!
21. Pay yourself first means
take paycheck deductions
every payday for you.

Why save money?
You will need money for…
…a car.
…a computer.
…a flat screen tv.
…a vacation.
…a wedding.
…furniture.
…to pay college for my kids.

…an emergency.

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content/uploads/2009/09/graduation_clipart_photograph_frame.gif
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22. When you pay yourself first,
you will be able to buy special things.

When you pay yourself first,
you will be ready for an emergency.

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This is not the best place to save money.

23. It is better to save money in a bank.
Banks pay you extra money to save.
The extra money is called interest.

http://static.seekingalpha.com/uploads/2009/9/30/saupload_fdic250.jpg

It is safe to save money in a bank.

24. The FDIC sign means that all
money in the bank is insured.

Saving money is very important!

If you save nothing for ten years, you will have nothing.

If you save $10 in a piggy bank each week for ten years,
you will have about $4,800.00.

If you ask the payroll secretary to deduct $10 from your
paycheck each week and deposit it in a savings account for
ten years, you will have $5,459.71.

This is more money because banks pay interest!

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I won't pay
anything.

25. Start saving when you are young.
You will earn more interest.

I don't understand my pay stub!

I can answer your questions.
Make an appointment to see me.
Bring your pay stub.


Don’t forget!
Pay yourself first!

http://www.aisquared.com/zoomnews/images/1008/money.jpg

Understanding Paychecks :Do you know what these words mean?
•deposit –Put your paycheck in the bank.
•pay stub –describes earnings, hours you worked and deductions
•financial records -pay stubs, tax, insurance and car loan papers. Save financial
records 7 years.
•identity theft –Thieves may use your credit card or social security numbers to steal
your money.
•payroll secretary-follows rules to make sure correct taxes are removed from your
paycheck.
•net pay-your pay before taxes
•gross pay–after tax pay. This is what you take home.
•deduct-subtract
•deductions-Money subtracted from your paycheck for taxes or to help you.
•pay stub -a paper attached to your paycheck that shows how much tax is subtracted
from your income.
•charity-Money to help people. Giving charity reduces your taxes.
•retirement and 401K – money you will use when you are too old to work.
•Direct deposit-The payroll secretary will send your pay to the bank.
•Pay Yourself First!-Deduct money every pay day and save it!
•interest –Extra money the bank will pay you for saving money.
•FDIC –the government insures money in the bank to make it safe.

*Understanding Paychecks

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*Understanding Paychecks