Calculating overtime pay for hourly employees (and some salaried employees) Calculating and withholding federal and state income taxes Calculating and withholding FICA taxes (Social Security and Medicare) Calculating other deductions and benefits For those in their working years, it’s especially important to know how gross pay works. Learn more about gross pay so you can better understand your compensation and potential tax liabilities. What Is Gross Pay? Gross pay is the total amount of money an employee receives before any taxes or deductions—such as retirement account contributions—are taken out of their paycheck....

The Budget Control Act The Act gave Congress three powers. First, it allows the House of Representatives and the Senate to have their own standing budget committees. This gives them the ability to create their own budgets to use in negotiating the final appropriations bills. The Act also created the Congressional Budget Office. This office provides non-partisan analysis to facilitate Congress’s review of the budget. This includes a detailed review of the president’s budget for each fiscal year....

EmirMemedovski / Getty Images A hedger is an individual or company that is involved in a business related to a particular commodity. They are usually either a producer of the commodity or a company that regularly needs to purchase the commodity. An Example With Soybeans A farmer is one example of a hedger. Farmers grow crops—soybeans, in this example—and carry the risk that the price of their soybeans will decline by the time they’re harvested....

Eligibility for Cashing a 401(k) Plan If you are still employed by the company that sponsors your 401(k) plan, you won’t be eligible to cash out your plan unless it offers a 401(k) plan loan, allows hardship withdrawals, or offers in-service withdrawals. If you’re no longer employed by the company that sponsors your 401(k) plan, then you are eligible to receive your money. You can cash out the plan or roll over your 401(k) plan balance to an IRA....

Most people are comfortable investing in some stocks, understanding that the potential for positive returns is usually worth the risk over time. Others avoid the stock market altogether and instead keep their money in safe havens like bonds or basic savings accounts. Some investments offer the potential for higher-than-average relative returns, but they also come with a heavy dose of risk. These high-risk investments aren’t for everyone, but they could help a person on the path to wealth if they have the stomach for it....

Below are the four major categories and features we considered to rank home warranty providers. Cost Because homeowners purchase home warranties to save money, we considered the pricing of each provider’s plans to be extremely important. We looked at two things: Plan costTrade service fee range Coverage and support Customers want to know when they can expect their repairs to be started, so we factored in how long providers take to respond to claims....

For the best experience possible, find the right partner and treat the relationship as more than just a necessary step in a loan transaction. What Does a Loan Originator Do? An originator works with borrowers to evaluate loans and helps to ensure that the loan gets funded when needed. To do so, loan originators find lender programs that match the borrower’s situation, and they guide applicants through the process. They help clients gather information needed to close a loan, verify that information, and coordinate when any questions come up during underwriting....

But the rules for reverse mortgages can get tricky when the borrower dies and their home passes to heirs. Here’s what happens when you inherit a home with a reverse mortgage. What Heirs Need To Know About Reverse Mortgages A reverse mortgage can be a good way for people age 62 and older to get cash out of their home without selling the property. However, reverse mortgages come with a strict set of rules and deadlines, which can be complicated for their heirs....

The greenback was worth 0.92 British pounds on Wednesday, just shy of the all-time high of 0.93 pounds hit in 1985. A dollar bought 1.03 Euros that day, the most since 2001. The dollar was also the strongest against the Japanese Yen since 1998, and has been gaining against the Chinese Yuan, reaching its highest since 2008. In short, a dollar goes a lot farther in foreign countries than it did at the beginning of the year....

Any money you use is provided as a standard loan from your bank, so you’ll pay interest on the amount you borrow. However, overdraft lines of credit are often less expensive than standard overdraft protection programs, which may charge around $35 for each rejected transaction that hits your account. Still, some banks charge you a fee for each transfer from your checking line of credit or for each day that a transfer is made from your line of credit to your checking account....

The Different Chapters of Bankruptcy There are six numbered chapters of bankruptcy filings. Chapters 7, 11, 12, and 13 are applicable to individuals in different circumstances. Chapter 7 is sometimes called a “straight” bankruptcy, because it provides for the full discharge of allowable debts. The bankruptcy court effectively takes control of your assets and liquidates them as necessary to pay off as much of your debt as possible. You’re no longer responsible for those unpaid balances after your bankruptcy discharged if you don’t have sufficient assets to cover all your debts....

Bonds compete with stocks for investors’ dollars because bonds are often considered safer than stocks. However, bonds usually offer lower returns. Stocks tend to do well when the economy is booming. When consumers are making more purchases, companies receive higher earnings thanks to higher demand, and investors feel confident. One of the best ways to beat inflation is to sell bonds and buy stocks when the economy is doing well....

People might look to transfer a lease because their financial situation has become more difficult, they have had a change in family circumstances, or they simply want to buy or lease a different car. Whatever the reasons, here is how these transactions usually work, along with the pros and cons of lease swaps. How to Swap a Car Lease If you are in a lease that you’d like to transfer it to someone else, your first step should be to confirm with your finance company that it is possible....

The industry has earned a bad name for itself with unregulated sales practices. Insurance regulators have only recently begun to address annuity commissions, but progress is being made. You should still ask questions about your agent’s pay if you’re thinking about trusting one with your money. An annuity can be a great way to fund your retirement. However, it’s vital for all people involved for agents to be upfront and clear about how they are paid and how much they receive....

Renting a Car or Hotel Room Some car rentals and hotels require that you have a credit card on file when you rent the car or room. In this situation, you may need to use a credit card. They want this so they can charge for additional things you may order for room service or for damages to your rental. The credit card usually has to have a certain amount available on it for this to work....

What Is a Credit Score? Your credit score is a number that measures your creditworthiness. It’s based on the information on your credit report, which includes a record of your credit card and loan history. Credit scores give creditors and lenders an easy way to understand how well you’ve handled your credit obligations in the past. Without a credit score, creditors would have to sift through all your credit information and make a more subjective decision about your credit risk....

This article explains indirect taxes, with examples, and how they differ from direct taxes. What Is an Indirect Tax? Indirect taxes are placed on goods and services, which raises the price so that the consumer ends up paying more for the item. One example of this is the gasoline taxes set by states. If you buy gasoline in Texas, for instance, you pay a motor fuel tax of 20 cents a gallon....

With a HELOC, you are extended a credit limit for the draw period, when you make only interest payments, then you pay back the principal during the repayment period. HELOCs do offer homeowners several benefits, but they have closing costs to consider. Let’s learn more about what fees you can expect and how they compare to fees on your primary mortgage. Are There Closing Costs on a HELOC? HELOCs are similar to mortgages in that they hold your home’s equity as collateral to secure the lending....

Most states prohibit an agent from rebating commissions, but that doesn’t mean there aren’t ways to pay less money. Learn how commissions affect your insurance premium, and how to be a smarter consumer. What Are Life Insurance Commissions? Life insurance agents who sell policies from one company are known as “captive” insurance agents. They may receive lower commission rates because they may receive other benefits, such as retirement accounts and health insurance....

Benefits of Borrowing Online The newest generation of lenders are focused on making borrowing as easy as possible. Online lenders can almost tell you instantly whether or not you’re approved, how much you can borrow, and what your payments will be. Most traditional banks are different; even if you fill out an application online, it may take a while to get an answer because somebody needs to review it. Online lenders also tend to offer better interest rates and smaller service fees (if any) than traditional banks because they don’t have the same overhead costs as banks and credit unions with physical branches....