Paychecks and Tax Forms Take Charge of your Finances

Paychecks and Tax FormsTake Charge of your FinancesDollars & SenseUnit 2: Taxes & Paychecks, Part 2: W4 I9

1Changes on slide 3, 18ObjectivesUpon completion of this lesson, students will be able to:Demonstrate a basic knowledge of the terms associated with a paycheck.Explore the methods for paying employees.Understand the systematic deductions removed from each paycheck.Complete standard tax forms required on the job to benefit each students individual situation.Incorporate the use of reading a paycheck into daily life.Gain an understanding of take home pay by strengthening knowledge of various paycheck deductions.Where Does My Money Go?Almost 31% of an individuals paycheck is deductedTaxes are the largest expense most individuals will haveTherefore, it is important to understand the systematic deductionsU.S. tax system operates on an ongoing payment systemTaxes are immediately paid on income earned

TaxesTaxes Compulsory charges imposed on citizens by local, state, and federal governments.Used to provide public goods and services.Largest amount of taxes a person pays is on his/her income.Internal Revenue Service (IRS) Collects federal taxes, issues regulations, and enforces tax laws written by the United States Congress.

Starting a New JobTo receive a paycheck, an employee must:Complete a Form W-4 Employees Withholding Allowance CertificateComplete a Form I-9Employment Eligibility Verification

Form W-4Employees Withholding Allowance CertificateDetermines the percentage of gross pay which will be withheld for taxesAllowancesUsed to determine the amount of federal taxes withheld from the paycheckA person may claim a personal allowance if no one else claims the person as a dependentDependent a person who relies on the taxpayer for financial support7How do I complete a W-4 form?Follow these easy directions

8Complete lines 1 & 2Provide your name, address, and Social Security number

9Complete line 3Check box for marital status

10Complete lines 5 & 6Insert the number of dependents you will claim.BUTIf you are under 18 and you are already claimed by another person, you must claim 0

11How do I figure how many allowances to claim?Next, complete the Personal Allowances Worksheet

Its on the same page as the W-4

12How do I figure how many allowances to claim?Complete lines A through G

13How do I figure how many allowances to claim?Now add the number of dependents you have claimed and write the total on line H

14How do I figure how many allowances to claim?You will probably claim either a 0 or 1ANDwith 0, the highest amount will be withheld

Form I-9 Employment Eligibility Verification FormUsed to verify the eligibility of individuals to avoid hiring undocumented workers or others who are not eligible to work in the United StatesMust provide documentation which establishes identity and employment eligibilityExamples include drivers license, passport, Social Security card, and birth certificate

Employers Must Complete