Good Financial Reads: Advice for Employees

Corporate mergers are nerve-wracking because they introduce a lot of unknowns into your life. Immediate questions come to mind. How will it affect your position? Your salary? Will there be layoffs? After the initial shock, other questions arise. If your employer is sold, what will happen to your retirement plan? Many times, the details aren't determined until months after the merger is complete.

Do you know where your money is invested?  Whether you invest in your company’s retirement account or you choose your own investments what do you really own?  You remember the decision you have when you need to pick from a list of funds available to you. Often you see the name of a fund and some description or performance history, but you don’t really know what that fund is invested in.

We are in a unique moment in time for employees. Ever since the “Jobless Recovery” of 1990-1991 cost President George H. W. Bush the ’92 election, Corporate America has had the upper hand on their employees. But times are changing. Your income can be your greatest financial “asset,” creating opportunities to save, spend, and give towards your family’s financial goals. With that in mind, our view is that now is the time to be looking for a new job!

Do you remember the last time you received an actual physical check on payday? It was a thrill to receive that envelope at the end of the week, revealing the tangible reward for dedicating much of my time and talents. The pay stub featured dozens of valuable insights, but most of us simply glanced at the check amount and thought “yeah, that sounds about right.” As electronic pay stubs and direct deposit have replaced this old school approach of getting paid by physical check, many employees neglect to access and review their pay stubs at all – sometimes for months, even years! Shocking, I know.

An employee completes Form W-4 to direct their employer as to the amount to withhold for federal taxes. The W-4 can result in an over or underpayment of taxes for the year if not done correctly.

The new design as of 2020 reduces the form's complexity and increases the withholding system's accuracy. Employees that completed the prior version of Form W-4 before 2020 are not required to furnish a new form, meaning employers will continue to use the last version submitted.