Transcript Financial Education for College Access and Success
Personal Finance:
Module 1 Lesson 3 Determining Your Destiny
Determining Your Destiny •
Slide 2
What is employee compensation?
It is the total amount of pay provided to an employee in exchange for services performed. Employees can be paid in two ways:
Direct
(monetary)
Indirect
(non-monetary)
Video:
Overview of Employment Compensation
Understanding Employee Compensation
Determining Your Destiny •
Slide 3
Types of monetary compensation
Salary Wages Overtime Commission Tips Bonuses Entrepreneurship
Determining Your Destiny •
Slide 4
Salary, wages, and overtime
Salary
– a fixed amount paid each pay period no matter how many hours were actually worked
Wages
– usually received as an hourly, daily or weekly rate of pay; fluctuates based on the actual amount of time the employee worked during the pay period
Overtime
– pay for hours worked over 40 hours in a week paid at the rate of at least one and one half the employee’s regular rate of pay
Determining Your Destiny •
Slide 5
Commission, tips, and bonuses
Commission
– a common way to pay sales people. Usually a percentage of the total price of the product or services sold during a pay period
Tips
– an extra amount a customer pays to reward service workers for providing quality service
Bonuses
- an amount paid in addition to regular pay to reward good performance by the employee, company, or both
Determining Your Destiny •
Slide 6
Entrepreneurship (self employment)
A person works for him- or herself and owns the business Self-employment income, called profit, is money left over once all business expenses are paid
“
Determining Your Destiny •
Slide 7
Employee benefits
Indirect or non-monetary compensation provided to employees (by their employer)
in addition to
wages, salary and tips
College Grad
Evaluating Your Benefits Package ”
Determining Your Destiny •
Slide 8
Basic types of employee benefits
Paid leave Group insurance Retirement plans Educational assistance program Profit-sharing and stock options
Determining Your Destiny •
Slide 9
Types of paid leave
Holiday pay
– worker is paid for certain holidays when the place of employment is closed
Sick leave
– worker is paid even though he or she is not at work due to illness
Personal/annual leave
– worker is paid even though he or she is not at work because of personal reasons
Determining Your Destiny •
Slide 10
Group insurance
Group Health Insurance
– employer-sponsored insurance that helps provide protection against the costs of medical services and may include
dental
and
vision
options.
Flexible Spending Accounts (FSA)
– money that is deducted from an employee’s paycheck to pay health care expenses not covered by insurance Employment Benefits
Flexible Spending Accounts
Determining Your Destiny •
Slide 11
Group insurance
Group Life Insurance
provides benefits to dependents and/or others you name in the case of your death
Group disability insurance
replaces lost wages or income if you are unable to work
Short-term disability
replaces a portion of income for up to six months
Long-term disability
replaces a portion of income for longer than six months
Determining Your Destiny •
Slide 12
Comparing employee benefits
Worksheets Health Insurance Cost Compare Employee Benefits Links and Activities Benefits Wizard
Determining Your Destiny •
Slide 13
Retirement plans
Employer-sponsored plans help employees be better prepared for a time when they are retired and no longer working.
401(k) Plans
– employee chooses how much money to deduct from each paycheck and how to invest it Many employers will offer to match a portion of the employee’s contribution!
Begin Providing for Your Future Pension Plans
– retirement accounts funded entirely by the employer Value varies depending on years worked, salary, etc.
Determining Your Destiny •
Slide 14
Educational assistance program
An employee benefit wherein some or all educational expenses are funded by the employer Policies are set by employer May extend to family members
College access tip!
Having part or all of
your education paid for by an employer
is a valuable benefit!
Determining Your Destiny •
Slide 15
Profit sharing and stock options
Profit-sharing
– employees are paid a share of the company’s profit
Stock options
– employees receive stock in the company at a discounted price
Determining Your Destiny •
Slide 16 “
Step with care and great tact and remember that Life’s a Great Balancing Act.
Oh , the Places You’ll Go!
by Dr. Seuss
”
Determining Your Destiny •
Slide 17
Work-life balance
We all deserve to be able to balance our careers with
rewarding personal lives
! Employees who feel they have a better work-life balance tend to
work 21% har
der.
Find out as much as you can
before deciding if a career opportunity is right for you: o o o o o Flexible work schedule On-call or overtime Overnight travel Family emergencies Commute time
Determining Your Destiny •
Slide 18
Financial Education for College Access and Success
For this project, the
PR/Award Number
is
V215W100015
and the
Department of Education
is the funding agency.
This information is provided for the reader's convenience. Tennessee and U.S. Department of Education are not responsible for controlling or guaranteeing the accuracy, relevance, timeliness, or completeness of this information. Further, the inclusion of information or Web site address does not reflect the importance of the organization, nor is it intended to endorse any views expressed, or products or services offered.