plan that pays for hospital, medical, and surgical benefits for people who are 65 years old and older, and for some people with disabilities. This contribution amounts to 1.45% of your gross income. Workers’ Compensation/Disability
These are contributions to a tax funded program that provides support in the event that you are injured or disabled on the job and are unable to work for a period of time. Unemployment
These deductions provide financial support in the event that you are laid off or lose your job due to no fault of your own. In other words, if you get fired for stealing paperclips, you can’t get unemployment payments.
Personal Finance Stories Reggie finally got his first job. At the interview, he was told he’d be paid $10 per hour and would work between 16-20 hours per week. He was excited at the thought of earning his own money and being able to pay for entertainment, clothing and a few other things. He would be paid every other week. After two weeks of working at the coffee shop, he totalled 36 hours. By his calculations, his first paycheck would be for $360. On payday, his boss handed him his paycheck, and he ripped it open to find that it totalled $290. Confused, he told his boss that there must have been a mistake. His his boss laughed and told him that Uncle Sam took his cut. Still confused, Reggie went home and asked his parents if they knew Uncle Sam. They certainly did! Reggie’s parents explained that for every dollar he earns, a small percentage gets taken out for taxes, which pays for things like federal and state programs, social security, unemployment insurance, etc. Reggie didn’t think it was fair, but his parents said that it’s just the way it is - that the money goes to help other people, and someday, once he old enough, he might need to use those programs for himself.
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