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.

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It's great to get a paycheck!

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What should you do with it?

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{ This is your { paycheck.

{ This is your { pay stub.

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1. Deposit paychecks in the bank.

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This is your pay stub.

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hours(how long you work)

x rate($$ per hour)

= pay

2. Check your pay stub.

Make sure it is correct.

pay

earnings

wages

income

These words mean the same thing.

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3. Save pay stubs in your personal financial records.

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My Financial Records

January – December, 2012

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

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

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5. After seven years, shred old financial documents.

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

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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.

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

TAKE NO ACTION TO APPREHEND THIS PERSON YOURSELF

Who prepares my pay check?

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

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What is all of this about?

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gross pay

net pay

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What do these words mean?

8. gross pay = before tax pay

9. net pay =after tax pay

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

before tax pay

after tax pay

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gross pay

net pay

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

These are tax deductions.

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How much money was deducted from thispaycheck to pay taxes?

These are tax deductions.

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gross pay

net pay

These are tax deductions.

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

No one likes to pay taxes.

In this world, nothing is certainexcept death and taxes.

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

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When you start working,

I’ll ask you to fill out a W-4 form.

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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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15. Some deductions benefit your children.

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

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

a. You choose how to help other people.

b. It reduces your taxes.

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18. Some payroll secretaries can send your paycheck directly to your bank.

This is called direct deposit.

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

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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!

P Y F

ayourselfirst!

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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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.

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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 $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.

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

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!

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

Don’t forget!

Pay yourself first!

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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.