Archive for July, 2009

Monday, July 20th, 2009

Understanding Your Paycheck

Every pay period, along with your paycheck, you get a stub – an extra little bit of paper with a lot of information. Depending on your employer, your stub, or explanation statement, can look very different. However, there are certain pieces of information that every employer must include on a paycheck stub.

Gross Pay

Your gross pay is your total income from this pay period.

Net Pay

Your net pay is the amount you actually receive. Your gross pay becomes your net pay by subtracting all withholding, including taxes, Social Security and Medicare.

Federal Tax Amount

The amount withheld from your paycheck for federal taxes can vary, depending on the number of exemptions you claim on your W-4 form. Your employer required you to fill out a W-4 form when you were hired and you will need to fill a new form out every year. This money goes to cover your taxes when you file your yearly tax return. If too much was withheld, you will receive a tax refund. If not, you will need to pay an additional amount.

State Tax Amount

Most states withhold set amounts from your paycheck to cover your yearly state tax obligations, just like the federal system. However, not all states use this system, so you may not have a state tax amount listed on your pay stub.

Local Tax Amount

Some cities also withhold taxes from paychecks, but it is relatively rare.

Social Security

A percentage of every paycheck you receive is withheld for Social Security. That amount changes annually. Upon your retirement, the federal government will pay out a monthly Social Security payment. You may also have a number listed for FICA on your paycheck. FICA (Federal Insurance Contribution Act) payments are made by your employer to match your Social Security contribution.

Medicare

Medicare withholding from your paycheck operate similarly to Social Security, though are specifically meant for paying your medical expenses after retirement. Your employer is also expected to match your contribution.

Year-to-Date, Important Notices, and Other Information

Your paycheck stub should list how much you’ve paid to each withholding so far in the calendar year. Many employers add notices to paycheck stubs, since all employees will receive one, and depending on your employer, your paycheck stub may include other deductions, such as insurance payments or retirement plan contributions. It may also list leave time, childcare assistance or other benefits.

Saturday, July 18th, 2009

Three Secrets to Resigning Without Burning Bridges

You may have received a job offer — the one you’ve always dreamed about. Before you can start it, though, you have to resign from your current position. Even if you faced problems, you need to resign politely and avoid the conflicts that can stem from taking a new position.

If you go out with a bang, instead, you can face a lot of problems from your burnt bridges down the road. Hiring managers have been known to contact applicants’ past employers, even if they aren’t listed as references. With a little planning, though, you can leave quietly and with goodwill.

1. Plan out your resignation in advance. Get all of your current projects in order. You should be able to tell your manager or replacement the exact status of any given project, as well as point out the next steps. You should also take the time to review any contract you might have with your current employer, as well as any resignation procedures listed in your company handbook. Once you’ve set the ball rolling, you need to know what is needed to tie up loose ends, like your health care and retirement package.

2. Give your employer as much advance warning as you can. Two weeks is considered standard, and many employers include a requirement for at least that much notice in their contracts. Even an extra week of notice can really improve your employer’s view of your resignation: you’ll have a better chance of tidying up your projects, and may even train your replacement before you go.

3. Write a polite letter of resignation. Avoid bringing up criticism in your letter of resignation, and it is acceptable to entirely omit your reason for leaving. A letter of resignation only needs to contain your job title, the effective date of your resignation and your signature. Be aware that many companies will expect you to leave immediately if you hand in a letter of resignation, and be prepared to do so.

No matter how well your resignation goes, there might be a few hard feelings. The only thing you should focus on is completing your responsibilities before you leave. It’s the easiest way to build goodwill and leave an impression that will last even after you’ve left.