Employment Concepts and Job Application Essentials

Employment Concepts

• Employment agency provides lists of available job openings for job seekers.
• A fee may be charged by the employment agency if a job candidate is placed in a position.

Job Application Essentials

• A resume summarizes an individual's education and qualifications relevant to employment.
• The W-4 form is utilized by employers to determine the income tax withholding for employees.

Payment Structures

• Benefits are additional compensations provided by employers beyond salary.
• Various pay schedules include:
  • Weekly: 52 pay periods per year.
  • Biweekly: 26 pay periods per year.
  • Semimonthly: 24 pay periods per year.
  • Monthly: 12 pay periods per year.

Direct Payment Methods

• Direct deposit allows automatic electronic transfer of paycheck into bank accounts on payday.

Work Hours and Compensation

• Hourly rate refers to the pay an employee receives for each hour worked.
• Regular hours consist of a specified number of hours worked weekly.
• Overtime hours are any hours worked in excess of regular hours, usually compensated at a higher rate.

Overtime Compensation

• Overtime hourly rate is often higher than the regular hourly rate.
• Time and a half overtime equates to 1.5 times the standard pay.
• Double-time pay is calculated as twice the regular hourly rate.

Understanding Pay

• Gross pay is the total of hourly and overtime earnings combined.
• Minimum wage is the legal lowest hourly pay an employee can receive in the United States.

Commission and Royalties

• Commission is earnings based on sales performance.
• Royalties are payments derived from the sale of products created by someone but sold by another party.

Unique Payment Structures

• Piecework involves payment based on the number of items produced.
• Piecework rate is the pay for each item manufactured.

Employee Benefits Overview

• Employee benefits are additional options that employers may offer to their workforce, enhancing overall compensation.
• Types of benefits include:
  • Insurance: Covering health, life, and disability.
  • Paid vacation time allows employees to receive pay during absence on vacation.
  • Paid holiday time offers compensation for national or religious holidays.
  • Retirement plans like 401(k) and Roth IRA provide saving options for employees post-retirement.
  • Investment plans can involve contributions to money market or stock market investments.
  • Stock ownership plans offer investment opportunities in specific stock markets.

Family and Health Insurance

• Childcare leave entitles employees to time off to care for a child while retaining their job position.
• Family healthcare ensures insurance coverage for all family members until the age of 26.
• Individual healthcare insurance covers only the employee.

Retirement and Safety Nets

• A pension provides compensation to retirees after they stop working.
• Unemployment insurance supports eligible unemployed individuals due to circumstances beyond their control.
• Base period calculations involve assessing earned salaries over a defined timeframe.

Workplace Safety and Social Security

• Workers compensation is designed to assist employees who sustain injuries at work.
• Social security provides income post-retirement and benefits for disabled workers or families of deceased workers.

Taxation and Contributions

• FICA (Federal Insurance Contributions Act) was established in 1935, initiated by President Franklin D. Roosevelt.
• FICA tax applies to employees working for companies covered by social security.
• Social Security tax is 6.2% of gross pay, funding social programs.
• Medicare tax contributes 1.45% of gross pay to healthcare funding.
• Maximum taxable income is the cap on earnings subject to social security tax deductions.
• Social Security Number (SSN) is a unique identifier assigned to individuals for tracking earnings and benefits.

This quiz covers vital concepts related to employment, including job application essentials, payment structures, and compensation methods. Test your knowledge on resumes, employment agency fees, and direct payment methods to solidify your understanding of the employment landscape.