Road: Debt and Gross Pay Essays

Submitted By hayleysummey
Words: 448
Pages: 2

Writing a Check
Know how much money is in your account
Always write with a pen
Make sure the date is correct
Always sign the check
Keep them in a safe place.
Taxes
Businesses provide the govt with taxes and good and services
Businesses receive services and payments from the govt
Households provide businesses with labor and payments
Businesses provide households with income and goods and services

Gross Pay vs. Net Pay
Gross pay: the total amount that an employee earns before taxes and other deductions
Net pay: the amount of money you will get to have once taxes are taken out of your check
Differences between gross pay and net pay


Payroll, federal, and state taxes
Employees complete the W-4

Social Security
Retirement benefits
Benefits for the dependents of retired workers
Benefits for the disabled and their dependents

Medicare Tax
Benefits for certain individuals when they qualify to draw social security
Workers
Retired workers
Spouses of worker and retired workers
Student Loans
Usually payments start 6-9 months after graduation
If this is not possible you must apply for a deferment of the loan
You must repay your student loan on time or there are steep consequences
Unsubsidized Loans

Not based on financial need
Intereset DOES accrue from the time the loan is disbursed to the school.
Maximum amount per school you can receive per year
Subsidized Loans
Based on financial need
Interest does not accrue on the loan while you are in school at least half time or during any deferment periods. ( the federal govt subsidizes the interest on the loan during this time)

Federal & private student loans
The interest rate on Stafford loans and PLUS loans will vary from 3.4-8.5%
Private student loans APR may vary depending on your credit history and the school…