Chapter 6 Pay, Benefits, and Working Conditions

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Chapter 6 Pay, Benefits, and Working Conditions

• Personal Finance I
• Fall 2007

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Gross Pay

• The total or agreed-upon rate of pay before any
  deductions are made.
• Hourly wages
• Overtime

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Pay Periods

• Weekly
• Bi-Weekly
• Twice a Month
• Monthly

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Deductions

• Income Tax (state and federal)
• Social Security or FICA (7.65)
• Medicare
• Retirement 401(k) profit sharing pension

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Deductions (cont.)

• Insurance
• Health
• Life
• Vision
• Dental
• Others?

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Deductions (cont.)

• Savings
• Pay Yourself First
• Loans

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Net Pay

• The amount left when all deductions are taken out
  of your gross pay.
• (Regular Wages or Salary Overtime) Deductions
  Net Pay

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Benefits and Incentives

• Profit Sharing incentive pay
• Paid Vacations and Holidays
• Employee Services
• Child Care
• Sick Pay
• Leaves of Absence

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Benefits and Incentives

• Insurance
• Health
• Life
• Dental
• Vision
• Bonuses and Stock Options
• Pension and Savings Plans
• Travel Expenses

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Work Arrangements and Organizations

• Flextime
• Job rotation
• Job sharing
• Permanent part-time and telecommuting

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Labor Unions and Professional Organizations

• Labor Union
• Functions of Unions
• Types of Unions
• Craft union
• Industrial union
• Public-employee unions
• Professional Organizations
• ABA, AMA, NEA, NBEA

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STOP AT THIS POINT
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Budgeting

• Budget
• An organized plan whereby you match your expected
  income to your expected expenses.

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Budgeting (cont.)

• Estimate total expected income for a certain time
  period
• Decide how much of your income you want to save

• Estimate your expenses
• Fixed Expenses
• Variable Expenses

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Budgeting (cont.)

• Disposable Income
• The money you have to spend
• Financial Plan
• An orderly program for spending, saving and
  investing the money you earn.