In this week's module, I learned of some terms and concepts related to paying taxes. I learned that taxes are payments of money to federal, state, and local governments. Sales tax on items like clothing and furniture are set by the local and state government. State and local taxes mainly impact low and middle class since those tax amounts are a set number. Federal income taxes are based on income which include wages, salaries, commissions, tips, and interest from savings accounts and other investments. Federal income taxes are based on the more you make, the more you pay. The highest percentage of federal income money is spent on human resources and include payments to Medicare, Social Security, and other retirement programs. Both individuals and businesses pay taxes. Excise tax is collected from manufacturers of products like the tax you pay when you buy a gallon of gasoline. Deductions, such as charitable contributions, are expenses that are subtracted from your income prior to finding out the amount of taxes owed. Tax avoidance is a money management strategy legal under the tax code if properly documented, that decreases one's taxes through investing in individual retirement funds (IRAs) or charitable donations. Tax evasion is an illegal act achieved when one does not pay taxes or does not report all earned income. I also learned about other people's experiences reading a paycheck stub. Some people could not understand how to read their check stub and I thought it was odd because in my experience I never had that much trouble. I don't usually look at my check stub and try to read but when I do, it is pretty understandable for me. It lists federal with holding, Social Security, Medicare, and LA with holding as money that is taken out of my check. I can see that federal and LA with holding is taxes taken out and I get that it's to pay federal and state government, and the Social Security and Medicare is money taken out for when I am older and retire. Some people were unaware of why money was being taken out and what that money was going towards. It was interesting to see how many questions were asked regarding how to understand your check stub. I also read about the value of employee benefits. I read about insurance options including medical, dental, vision/eye care, life, accidental death, business travel, and disability. Some of these are more necessary than the others in my opinion like medical and life insurance. My sister who has eye problems would find the vision insurance more valuable than I would and others who work in dangerous environments may find accidental death insurance more important that I would. 401(k) and pension plans are valuable package benefits to begin saving from each paycheck for future retirement. Vacation, holidays, and sick/personal days are also great benefit packages to receive for emergencies. If your child is sick and you can't go to work, you can still get paid for a sick day. Taking off for vacation and holidays and still getting paid is also really beneficial.    

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References:

Understand All 25 Components of Your Job Offer Benefits Package (n.d.). Retrieved on Feb. 2, 2021, from CollegeGrad.com

         https://collegegrad.com/job-offer-negotiation/understand-all-25-components-of-your-job-offer-benefits-package#c22.5

Goldsmith, E. B. (2016). Consumer economics : Issues and behaviors. ProQuest Ebook Central

          https://ebookcentral.proquest.com

Lewis, M. R. (2019). How To Read A Paycheck Stub. Retrieved on Feb. 2, 2020, from wikiHow.com 

          https://www.wikihow.com/Read-a-Pay-Check-Stub