Education and Finances

Today is a special edition targeted to those who are still in the education system.  The consensus this time of year is “spring fever” and “I can’t wait until summer is here.”  Before you start the 2-month brain checkout however, let’s keep some things in mind.

One of my favorite bloggers, Jeff Thredgold, publishes a regular weekly economic new update.  While I don’t always agree with his thoughts, it is fascinating to read the updates of statistics published by the government relating to all facets of our economy.  In the most recent edition, he discusses the job market and the associated unemployment rate.  One of the facts published is:

“It comes as no surprise that one’s educational attainment typically has a direct impact on employment. The jobless rate for those workers with less than a high school diploma was 14.5% in March. For those with a high school diploma, but no college, the rate was 10.8%.

For those workers with some college or an Associate’s degree, the jobless rate was 8.2%. For those with a Bachelor’s degree and higher, the average unemployment rate was 4.9%.”

My blog topics focus mainly on personal finance, tax and accounting.  In this case though, economic statistics point out a very important concept.  The best way to gain control over your finances is through education.  Many other studies promote the fact that educated employees tend to earn higher incomes over their lifetime as well.

A combination of education, higher wages, less job loss and responsible financial moves can lead to a happier and more successful life.  Those that look forward to getting out of high school and never going back to school are setting themselves up for a much more difficult life financially.  As we move ever closer to the close of another school year, keep these facts in mind as you make plans for the future.  The financial and educational choices made early in life have dramatic effects on the later years of life.

You can sign up to receive the weekly economic news for free from essentially any page on Mr. Thredgold’s website.

Learn About Payroll

Q.  I just started a new job and my employer wants me to do the payroll too. How do I learn some more about it so I don’t mess it up?

A. Thank you for looking for more education.  So many people think that payroll is nothing more than taking out taxes.  The payroll process has grown so complex in the last 15 to 20 years that it takes some serious education and study to keep up with everything.  There are several places you can look for payroll education.

1. I don’t know what state you are in, but there is likely a local chapter of the American Payroll Association close to you.  You can find the one closest to you using this chart.  Local chapter meetings allow you to network with your payroll peers and gives you a chance to ask questions as you learn.
2. The American Payroll Association itself has courses and books available that can guide you through issues you may be having.  They also offer an email list-serve and member hotline that can be useful resources as well.
3. PayrollTalk.com is a good resource.  It is a free online forum for discussion payroll topics.  Everything from tax calculation, to international payroll, to handling complaints is discussed.  You can read and search other posts or add your own after registering.  There are already several thousands members of this community who actively discuss payroll issues each day.
4. PaycheckCity.com can help you learn about the effect of different pay frequencies and W-4 values on your paycheck.  It can even be used for training your employees how to read their paycheck and the impact on take home pay of making changes to their W4.
5. Your local community college likely offers a class or two about payroll.  If not, payroll is often included as part of the accounting curriculum.
6. Publication 15 is the document published by the IRS that spells out fairly clearly your responsibilities as an employer for paying withholding taxes from employees.