Career Decisions.pptx

Unit 3Career Decisions Employment | Income Employment Classifications ■ Full time ○ 35+ hours per week, offered full benefits & perks ■ Part time ○ Fewer than 35 hours per week, MIGHT be offered benefits and perks, but not at full rate ■ Temporary ○ Short-term assignment ■ Contract ○ Hired for a...

Unit 3Career Decisions Employment | Income Employment Classifications ■ Full time ○ 35+ hours per week, offered full benefits & perks ■ Part time ○ Fewer than 35 hours per week, MIGHT be offered benefits and perks, but not at full rate ■ Temporary ○ Short-term assignment ■ Contract ○ Hired for a specific period of time or 3 Types of Income Type of Income Pros Cons Salary Pay is consistent Hours can be “flexible” No overtime Hourly Overtime Every minute counts Overtime 1.5x regular salary Usually nonpreferred hours Commission No sales = no money More sales = more money Bonus Extra money! Some contingencies Tips Receive in cash Regular pay is often low Amount varies 4 Labor Laws ▪ Over 16 years ▪ 14-15 years old ▫ Cannot work more old ▫ No limit on than 3 hours on a the hours school day | 8 hours on worked non-school day ▫ No time ▫ Cannot exceed more restriction than 18 hours per other than week during school ▫ Cannot work past 7 pm school hours during school weeks | 9 pm during summer 5 Job Perks ▪ Sick days ▪ Vacation days ▪ Holidays - paid or unpaid ▪ Job training ▪ Paid or unpaid leave options 6 Attendance at HHS vs Workforce HHS Kohls1 US Bank2 Amazon3 Average4 6 days 6 days 6 days 6 days 6 days 15 days 14 days 14 days 10 days 6 days **combined with vacation days 7 days National Holidays ● ● ● ● ● ● Thanksgiving Friday after Thanksgiving Christmas Day New Years Day Easter Memorial Day 19 days ● ● Vacation ● ● ● ● “Sick” Days Inservice days (5) Day before Thanksgiving (1) Winter Break excluding Christmas and New Years Day (6) Spring Break (5) Easter Break excluding Easter (1) Memorial Break excluding Memorial Day (1) 10 days **combined with vacation days But that DOESN’T include summer.. Attendance at HHS vs Workforce Previous Total National Holidays ● ● Independence Day Labor Day Vacation + “Sick” Days New Total HHS Kohls1 US Bank2 Amazon3 Average4 35 days 21 days 26 days 20 days 23 days 2 days 2 days 2 days 2 days 2 days 0 days 0 days 0 days 0 days 23 days 28 days 22 days 25 days Aka summer.. 60 days 97 days You get 72 more days off than the average full-time employee! 11 How much are you actually going to make? And how good are your time off benefits? Retirement 401k and 403b “ You’ll need 80% of your final annual income for every year you’re retired 14 401k | 403b Basics ▪ What’s the difference? ▫ 401k = offered by for-profit companies ▫ 403b = offered by nonprofit organizations 15 Employer Retirement Plan Perks 16 Employer Retirement Plan Perks ▪ Two formats ▫ Matching ▫ Employer contributes to your retirement based on your contribution ▫ FREE. MONEY. ▫ Profit sharing ▫ Gives employees part of the company’s profits 17 79% of employers offer retirement benefits 18 Job 1 Matching Plan 50% match up to the first 6% You earn $50,000 per year and contribute 8% $50,000 x 0.08 = $4,000 (your contribution at 8%) $50,000 x 0.06 = $3,000 (employer contribution up to 6%) $3,000 x 0.5 = $1,500 (employer contribution) $4,000 + $1,500 = $5,500 (total contribution) 19 Job 2 Matching Plan 100% match up to the first 5% You earn $50,000 per year and contribute 8% $50,000 x 0.08 = $4,000 (your contribution at 8%) $50,000 x 0.05 = $2,500 (employer contribution up to 5%) $4,000 + $2,500 = $6,500 (total contribution) 20 Profit Sharing Examples Job 3 $50,000/year | 10% of profits | Profit = $100,000 ($100,000 x 0.10) X ($50,000 / $150,000) = $3,333.33 (Profit x Percentage) x (Salary / Salary + Profit) Job 4 21 Which Job is Better? Job 1 Job 2 Job 3 Job 4 Salary $50,00 0 $50,00 0 $50,00 0 $50,00 0 “Free Money ” $1,500 $2,500 $3,333. 33 $1,500 22 Employer Retirement Plan Perks ▪ Vesting Period ▫ Your ownership or rights to employer contributions based on how long you’ve been with the company ▫ Common vesting period is 3-5 years Your contributions = always 100% vested Employer contributions = usually 23 Asset Allocations What type of profile is the right fit for you? ▪ Conservative ▪ Moderate Conservative ▪ Moderate ▪ Moderate Aggressive ▪ Aggressive 24 Employer Retirement Demo Employer Retirement Options Assignment on Classroom You need.. ▪ Paper / notebook – there is loose leaf in the back under DECA flag ▪ Something to write with ▪ A calculator (optional) Retirement Review Salary $53,500 Format Matching Format details 75% match up to the first 5% You would contribute 9% Your contribution 53500 * .09 = $4,815 Employer contribution 53500 * .05 = $2,675 2675 * .75 = $2006.25 Total contribution Employer + ours = $6,821.25 Total “earnings” Salary + employer = 55,506.25 Retirement Review Salary $52,250 Format Profit-sharing Format details 5% of profits | Profit = $225,000 You contribute 7% to 401K Your contribution 52250 * .07 = $3,657.50 Employer contribution (.05 * 225000) = $11,250 (52250 / (277250) = 0.19*11250 = $2,120.15 Total contribution Ours + employer = 5,777.65 Total “earnings” Salary + employer = 54,370.15 What job makes more financial sense? Job 1 Health Insurance Why we need insurance ■ One in five (19%) of people say they have experienced serious financial problems due to family medical bills ■ Average yearly cost for prescriptions = $1,200 ■ Average cost of office visit = $287 ■ Average emergency room visit = $1,082 ■ Average daily hospital stay = $2,607 32 Health Insurance ▪ Reduces the financial burden of risk by dividing losses among many people ▪ In return, you pay a premium ▫ Monthly payment to receive protection ▪ How is a premium determined? ▫ Based on general statistics! 33 Health Insurance Premiums Average monthly premium for individual insurance $557.50 Single $1,563.67 Family Average monthly premium for employer insurance $101.08 Single $476.17 Family Average monthly premium for Medicare (based on age and income) $0-$134 Per person Average monthly premium for Medicaid (based on income) $19 $353.75 Single $38 - Family of 4 34 Deductible ▪ Deductible ▫ Amount you’ll pay before your insurance benefits kick in ▫ Lower the deductible = higher the insurance premium 35 Copay & Co-Insurance ▪ Copay ▫ A small fixed amount outlined in the policy that you pay each time a covered service is provided ▫ Does not count towards deductible ▪ Coinsurance ▫ The percentage of costs of a covered service you 36 Out of Pocket ▪ Maximum amount you’ll pay in the year ▫ Usually one calendar year (January 1 - December 31) 37 Health Insurance Practice Today’s Agenda.. ▪ On Your Own Sample Plan 3 ▫ Check with me ▫ If okayed, move on to next item ▪ Health Insurance Practice ▫ Check with me after each column ▫ If okayed, move on to next item ▫ One column will be graded and entered into gradebook 39 Net vs Gross Pay Mandatory and Optional Deductions Gross Pay vs Net Pay ▪ Gross Pay ▫ Amount earned for working during a pay period ▫ Salary - usually does not change ▫ Hourly- Number of hours x Hourly rate ▪ Net Pay ▫ Gross pay - deductions ▫ The amount you actually get ▫ Also known as take home pay 41 42 Mandatory Deductions MANDATORY DEDUCTIONS FROM YOUR PAYCHECK Deduction What do you get? Who pays? Federal Income Tax Funds services provided by the federal government such as defense, human services, monitoring and regulation of trade Employee State Income Tax Funds services provided by the state government, such as roads, safety and health (not all states have this tax) Employee Local Income Tax Funds services provided by the city such as schools, police and fire. (not all local areas have this tax) Employee Social Security Tax Provides income for old-age, survivors and disability insurance benefits Employee & Employer Medicare Tax Provides health insurance for retirees and certain disabled persons Employee & Employer 43 Optional Deductions OPTIONAL DEDUCTIONS FROM YOUR PAYCHECK Deduction What do you get? Who pays? Life Insurance Pays a beneficiary in the event that an employee dies Employer and/or employee Disability Insurance Provides benefits in the event that an employee is disabled Employer and/or employee Health Insurance Employee and family insurance coverage for medical and pharmacy services Employer and/or employee Dental Insurance Employee and family insurance coverage for dental care expenses Employer and/or employee Retirement Either 401k or 403b with potential matching or profit sharing options Employer and/or employee Employer and/or 44 46 Employment Forms I-9 and W-4 I-9 ▪ Federal employment form used to verify your identity and employment authorization (citizenship) ▪ Must be completed prior to working 48 49 50 W-4 ▪ Determines how much federal and state income tax gets taken out of your paycheck ▪ You fill out TWO forms- one for federal, one for state 51 Federal W-4 ▪ Only fill out the circled parts unless: ▫ You work more than 1 job ▫ You are married ▫ You have kids ▪ Filing status ▫ Single ▫ Married ▫ Head of household 52 Federal W-4 Practice Mike Smith is 48 Married 2 children, 2 and 6 years old Mike’s wife works as a dental hygienist ($70,000 per year) He earns $64,000 a year 53 Federal W-4 Practice Elise B. Jones is 24 years old Single and living on her own in an apartment She has two jobs Works as a secretary earning $35,000 per year Works as a barista earning $10,000 per year 54 State WT-4 ▪ Withholding exemptions 55 State WT-4 # of Withholdings 0 1 2 3 What the government gets at time of paycheck The biggest piece possible Decreases Decrease Decrease The smallest piece possible Smallest possible paycheck Increases Increase Increase Largest possible paycheck Largest refund Decrease Decrease / get nothing Get nothing / owe money Owe the most money Aren't responsible for anyone; someone else is responsible for you Responsible for yourself; living on your own Married OR Single with 1 kid Married with 1 kid OR single with 2 kids Married with 6 kids OR single with 7 kids Paycheck size Refund size Meant for who? … 8 56 State WT-4 Practice Mike Smith is 48 Married 2 children, 2 and 6 years old Mike’s wife works as a dental hygienist ($70,000 per year) He earns $64,000 a year 57 Wisconsin WT-4 Practice Elise B. Jones is 24 years old Single and living on her own in an apartment She has two jobs Works as a secretary earning $35,000 per year Works as a barista earning $10,000 per year 58 Agenda.. ▪ Comparing Job Offers ▫ very similar to your “test” Calculating Your Check Pay Information You earn $52,000 per year and get paid monthly You are single and have no dependents You only have one job You are contributing 7% to retirement You pay $85 for health insurance 61 Agenda • • • Quizlet Quizziz Comparing Job Offers (optional) 62 Agenda • • • • Quiz spots Unit 3 Concept Quiz Comparing Job Offers (will help you prepare for tomorrow) VB 2-3 due Monday 63 Agenda.. ▪ Unit 3- Career Decisions Test (Project) ▫ You may use your notes on this! ▪ VB 2 & 3 ▫ Due Monday! ▪ Study terms for test tomorrow ▫ You won’t be able to use notes tomorrow