Five classes focusing on Employment (W-2 vs. 1099), Employment benefits and taxes, Preparing an Annual Budgeting for Forecasting, and a Personal Financial Statement, plus How to Improve Credit to Obtain a Loan

Class 1: W-2 EMPLOYMENT

  • What key items should you negotiate and question when you take on a new job?  
  • What are the different pay periods (weekly, bi-weekly, semi-monthly, monthly). 
  • What is form W-4? How to set up exemptions and payroll deductions,
  • What is the difference between an Exempt and Non-Exempt employee? What state rules prevent overtime abuse. 
  • How to read a paystub and understand deductions? Period vs. Year to Date
  • What are pre-tax contributions?  i.e., health insurance premiums, retirement savings, transit pass, Health Savings Accounts.
  • 401K fundamentals, what is a match? what is vesting? How important is participation?
  • Unemployment Insurance, Disability Insurance, and Paid Family Medical Leave insurance. 
  • Worker’s compensation and payroll classifications – critical information for employers
  • W-2– how to read statements and the difference between Social Security/Medicare wages and Federal Taxable wages.
  • Cap on Social Security deductions.

Class 2:   INDEPENDENT CONTRACTOR EMPLOYMENT

  • REVIEW HOMEWORK – Maria’s W-2
  • What is an independent contractor?  What tests does the IRS use to determine if a person to be an independent contractor.
  • Understanding the reporting obligations when you hire independent contractors? 
  • What are the Self-Employment taxes you need to pay as an independent contractor? 
  • What is form 1099?  When must an employer send a 1099?  Who gets a copy.
  • Review of Schedule C for independent contractors

Class 3: PREPARING A BUDGET AND FORECASTING FOR THE FUTURE

  • Preparing an ANNUAL personal cash budget,
  • Projecting sources and uses of funds, looking back, projecting forward.
  • Understanding seasonal fluctuations in cash needs. 
  • Making a budget system that can be maintained.
  • Tips to gathering information to ease the process of preparing your budget.

Class 4: PREPARING A PERSONAL FINANCIAL STATEMENT

  • What is an Asset? different ways of evaluating assets (cost, market, depreciated basis)
  • What is a Liability?
  • What makes either an Asset or a Liability “Current”?
  • How to list Assets and Liabilities on a Personal Financial Statement
  • What is Net Worth – tracking wealth and change from year to year
  • How does a PFS differ from a business Balance Sheet?

Class 5: HOW TO IMPROVE YOUR CREDIT AND APPLYING FOR LOANS

  • How to obtain a free complete credit report and understand it. 
  • What factors influence your credit score and tricks to improve?
  • What goes into a bank loan application? 
  • What is credit utilization?
  • What is a debt/income ratio, – potential discussion of applying for a mortgage –
  • How to increase your chances of getting approved for financing?

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