What's up guys, I got a special video for you today. I got my good friend Floyd now Floyd is the CEO and co-founder of info queue if you don't know what info queue is please go check that out I'll leave a link below this video. However in this video, we're gonna be talking about something very important And that is UBI universal basic income now consider Floyd one of the most educated and well-versed individuals At least that I know personally that comes to this so hopefully you learn a thing or two about UBI So Floyd when we start off with your general say Idea of what is UBI to you? Yeah, I apologize. I can't keep looking at the camera since I'm kind of driving all the cars in autopilot. Yeah, we got a specialized I got to show you quickly a little tangent here. We got that's the Tesla. No hands self-driving. I love it so the basic income is this is the is the idea that we could actually rejig the system rejig societal expectations rejig the the role of government so that we're actually creating Effectively something like a dividend for everyday people for everyone So a dividend is one way of thinking about it. Other ways thinking about it as a basic income an income you get regardless of work Dividend is a kind of a next-level way of thinking about it. You know, we allow for private inheritance. What about social inheritance? There's a lot of Society's sustained has gained a lot of advantage from past generations from the contributions of people now long dead and a lot of that Money is not going to help Everyday people but but one of the main reasons why this is becoming more and more important is that we're entering Potentially a jobless future. There's two trends. The reason why a basic income now Let me let me get give a quicker introduction is the idea that everyone gets enough for basic food shelter and rent Maybe maybe it would be about $1500 a month because if you if you remove other people you could pool that money And it would take away that existential fear that most people in the world live with That wealthy people don't live with that.  They know to an abusive marriage say yes to making long-term decisions for things They really want to do their future find their true gifts and talents in life And you know because that's what what's with the rich have over what we really have that's really wealthy really valuable is not wealth It's actually long-term perspective. It's the ability to say make a long-term decision not worry about how you're gonna get there and not worry about like if you're gonna starve and And that's that's the real value. It's it's hope it's absence of fear and we're seeing what what impact fear is having on the economy and on the political system so the reason why And I'm going off. I hope that's okay. Yeah, man. Go for it The reason why this is becoming more means more prime time now in terms of awareness is it fortunately more fear people are afraid that Automation's gonna take away all the jobs and there's a lot of credible studies saying that within 20 years We're gonna lose potentially half of all jobs and and these are from like credible Institutions including you know even like McKinsey company management consultant I think they said in the next like five years or so based on self-driving cars, which we're in right now It's kind of There's a 1.2 million jobs of this year like potentially 47% of all of all jobs in the u.s Could disappear within 20 years similar projections have been made for Canada for the UK for other countries and even sadly There's projecting 50 to 80% of jobs lost in the emerging economies because that's where just when those companies started to industrialized Started to take on manufacturing those the easiest to automate jobs What's gonna happen if like 70% of people are out of jobs in like you know in India or in China when there's just started to industrialize It's gonna be crazy. So basic income is seen as a solution Well, that's if we're entering a job this feature then this whole notion that you're a worthy person only if you work is gonna Go away because there's not enough jobs So we either find a way that we have a basic income so that everyone can survive and still thrive And take and take on for example part-time jobs gig economy jobs Upworthy of work type jobs allow for that or allow for a future where you know You have you know rich people living in space stations and everyone else living in shantytowns You know because like we have the star trek view the future or we have the mercantile dystopian view the future like in the movie Aliens where the the corporations are saying people other planets and stuff and you know It's just those two views right and automation could bring that but I actually think that really important is that even if automation was never even a Thing it was never even a factor. We're already on a very scary trend with inequality in general You know since the early 80s all the trend lines are going in a direction We're now like half of all Americans can't find $400 in case of an emergency the top 0.1% Oh one as much as the bottom 90 and that wasn't the case 20 years ago, right?  So right now we're in an earlier stage where there's a few experiments that have already been done one was in the 70s in the town in Canada a small town in Alberta where For five years the whole village the whole town like 5,000 people got a basic income and they showed good results They showed a percent decrease in hospital visits They showed a very minuscule less work teenagers in school longer a mother stayed on Mount leave longer But but you know this whole fear people not working wasn't there There's there's been tested on in India that have shown that it's had amazing amazing Emancipatory effects on villages a lot of people turn to entrepreneurship also in Kenya really important said there by give directly There've been a few studies the 70s in the US to but they're quite small and they were statistically insignificant and But but basic income almost passed for example rich Nixon almost passed it past the house in the 70s it's kind of interesting by Republicans and But in terms of how to do it So that right now we need more research in that in that regard But there is actually have already been economists that have shown that for example Canada You could have a variation of basic income and you know in a revenue neutral manner Just eliminates a bunch of tax loopholes eliminate a lot of different welfare programs right now in the u.s A trillion dollars a year spent on 126 welfare programs fucking so you replace welfare with basic income you reduce the size of government You become a partner to people instead of a paternalistic just trust people to take care of themselves So there's been so it's been shown that it could be done in a revenue neutral way in Canada There's another study by an economist that showed that you could do it in the u.s For for only five hundred dollars additional income revenue that would need to be gotten from other sources and And these are just early stage right? So there's a lot of different approaches to to taxation or elimination loopholes or creating Sovereign wealth funds based on pooling You know the the results of like of like things we all commonly own for example like Republicans have proposed that we make A carbon tax, you know if you put pollution in the air well who owns the air so you can split that money Across to give two thousand dollars a check for two thousand to a family every family every year from just carbon tax alone in In Alaska they've had this kind of thing called the permanent dividend fund where every last can gets over a thousand dollars a year Just from oil revenues right like you know oil companies didn't put it in the ground They just took it out. So why wouldn't we share more of that? So there's a lot of new thinking about how you can approach recirculation of wealth It's not just income tax it could probably even done without raising income taxes There's a lot of different approaches and we really just need to get the will the political will to actually start looking into this What would you say are some good resources to start diving into this? I would say if you want the best comprehensive look just look up guy standing any videos by gas standing And he's got a recent book based income how we can get there. It's probably the most educated He's an economist and well was also a professor in the University of London and was in the UN labor Organization or whatever for many years so he he puts out the most comprehensive stuff But just also look on medium the basic income channel. You'll find a lot of great stuff there Cool, you know, I want to live in a world where I know that there's a floor, you know I know that everyone's okay not food stamps. Okay, not like um, he's arriving. Okay, not work to die Okay, but like not worried about existing. Okay, you know just knowing that you're gonna You're gonna be okay, and you can start a business you can take risks You can do stuff like that because you know that you're not gonna starve That's the world I want to live in that's the world we can create. I love it Well leave it at that. All right guys if you want more information on for Floyd I said there's a link below the video and I'll talk to you guys soon. Peace. Thank you


Hello and welcome to the breakfast on Plus TV Africa. I am Maureen and I am Yamgul and we're so glad to have you join us today It's a Friday and we're hoping that you are going to unwind when everything is done. Thank God It's Friday and we thank God that we are alive and well to see today. Yes. Thank God We are alive and well. It's a Friday flex and we are taking things a little bit easy Yes, yes, and that's why like we said we're going to be talking about spa I know a lot of people when you hear spa you think about massage Are they really the same or is there a difference and what kind of benefits will we have from there? Well, we also have the theme of today Do we play hard enough to offset the stresses of Nigeria's hardships? All work and no play as they say makes jagged all boy or makes you whatever your name is So when you work you play how much do we even play in Lagos? How much do we unwind in Lagos as it is not really that you will be playing like a child But when you rest and when you do other things that are not your routine things then you seem relaxed But do we have that time in Lagos at all?  Yet we do love our Lagos Isn't it interesting though because if you leave Lagos and go to Climbs that are more quiet and more where things are more calm stay there for a week And you begin to miss the madness of Lagos. How do you explain that? It's crazy. You just step into Lagos and you're like yeah Yeah, yeah, but you know we're talking some days ago about mental Evaluation that people need and all of us in Lagos kind of like need this thing once in a while You know go check yourself see How how your clock is ticking how how much sharp you are and what you need Sometimes you might just need help, but you don't know that you need help because I mean the stress is crazy You you're moving a 35 Minute journey. I always use that because the axis I leave is 35 minutes to the island and sometimes you spend the other day I spent eight hours on the road before I got home Close at 4 30 got onto the bus and then I got home like quarter to 12. Who does that? Way on earth you meet that and it is almost like it's a regular thing So federal government whatever it is whatever it's going to take for you to finish the road for us to move freely, please do because the hardship is When you're saying yam go that it's almost like a regular thing It is a regular thing in Lagos traffic is a regular at least we have an excuse now that okay They're working on the road So finish the road let that excuse be out of the way and let's know that our normal Lagos traffic has returned Not this one that is avoidable. So how do you recreate in Lagos? How do you relax when you're not in traffic when you're not in the office? You know recently I discovered some beaches in Lagos apart from the popular Oniru beach that's close to us here I don't want to mention their names because they've not paid us to advertise for them But you should take time and discover some of these beaches go there and just Immerse yourself in nature and let go don't take yourself too seriously all the time because sometimes trust me not A lot of people don't really take you as seriously as you think that they do So just try and relax and be happy with yourself and you know When you when you go to the beach the breeze From the water from the sea that hits you is different from the one you see You meet on traffic or even if you're sitting in the ac or anywhere The natural breeze you just feel like you know something is added to your life We came from nature. Yeah We came from nature. So when we when we communicate in nature, it is very therapeutic More than we can even explain when you pull off your shoes and let your feet down in the sand when you get your hands dirty Plain in the sand when you jump into water, whether you can swim or not like some of us that cannot swim Just splash it in there and just feeling that natural connection Is healing. Yeah. Well swimming swimming comes in various ways. Somebody asked me if I could swim I I come from a riverine area. Well, let me not say a riverine area But we have a river in my in my community and everybody can't swim. I said I can't swim, but I wouldn't drown I will float. I know how to float But to move from one point to the other I'll just go with the current just stay afloat and move with the current. That's all I do So, okay, I have an edge over you. You do have an edge of a riverine that we got So if we look at last mar today, uh, what they are saying, um last my Here to hard working. Okay. So mass movement along marina road from uba towards nnpc filling station kakawa and Cathedral still good connecting in a marina from outer marina by cms bus stop A good movement down to nitel intersection from cathedral Force road towards tbs is okay. Okay So if you are on that axis, let's say it is okay Well, when I was coming the roads were relatively free this morning even both ways So we hope that an improvement has come They get really free by this time of the day. Well now it's seven. So now this is the The the crazy time, but if you were to leave your home say five a.m. Six a.m It's relatively free. Uh, but when you get to seven six thirty six thirty then it gets crazy And then seven o'clock it gets really really crazy. So wherever you are You begin to find yourself in dire situations. What was the situation on third main line? Do we have that? Well, uh, that main land is not here But this morning when I was coming that main land was very very free, you know, uh, compared to all the days And why I'm saying this is both axis sometimes in the morning when you're coming the traffic is much If it is up to six o'clock and beyond the traffic is much But when you're going out of uh, vi to the mainland the traffic is very free Yes, but today on both sides it was very very free So I wonder what is happening if people took weekend earlier And then they are not on the road So from the other axis that last ma is talking about, uh, jegun le connecting Cola is good, but busy approaching cola due to, uh, commercial activities is better in what Uh Cases But busy approaching Is this cases that the road I have to what it's a rare set use my noko meter. I have okay castle Approaching castle due to an impediment along the corridor, which is expected to be evacuated soon So maybe there's a breakdown there. There's better movement in what marion road a bullet bar or Jaoba charity down to abattoir Return journey from abattoir down to charity is good inward and outward of social club road is also good. And finally On the return journey the entire stretch of a bullet bar inward a jegun le is good Good movement inward and outward of elecbo corridor So most of the things we are being told today Says that um or say that um the roads are good Relatively they are good. So whatever brought that to be Thank you Thank you for the traffic. Okay. So from there we'll move on to top trending And you have over 300 Nigerians fleeing the war turns to dan arrive safely in abattoir Yeah, well, finally, but that's just 300 out of 5,500 official figure We have 300 so we have 5200 also That have not arrived and I wonder what the logistic problems are And there you have the visual there of the returnees from sudan I'd like to I imagine most of them are students I also heard that we have up to 5 million In sudan 5 million Nigerians resident in sudan But I imagine and I think that they are concentrating on the students In the course of Let's say they are concentrating on the Registered ones because as we've heard some people are there and they're not registered With the embassy and I wonder why that happens. Some people travel even without the passports Nigerian passports They just want to smuggle themselves into another country and leave Nigeria and that's all I wonder how these people will be identified in a time like this So it should also serve as an advice, you know Less advice ourselves as we say in Nigeria Next time you're going to any country make sure you go legally and whatever it is let Have you said yes documented identify with your embassy? Let them know that you are in that country because you never know what will happen Yeah, whether you have enough confidence in the embassy there or not because they're helping complaints about Nigerian embassies in different countries Yeah, the way they operate Nigerians cannot count on them in terms of emergency when you go to renew your passport The kind of stress you have to go through we have so many complaints about our embassies in different parts of the country And so that I imagine it may be responsible for why some people do not go there to register Or identify with them So but whether that is the case or not where you are you must try to have yourself identified with your embassy So that in times of crisis such as this you will not be left behind Yeah, and um The authorities the Nigerian authorities you should try to do better The complaints coming from the people who are being evacuated already are so much apart from the fact that they were More or less abandoned in the desert as they were saying because they hadn't paid the Drivers that were conveying them to Egypt and all that and so many other problems. They also are footages Where they are showing us the kind of toilets the kind of places that are being lodged and is yes They are refugees as it were But when you say you have voted so much money Per individual to take them home. Let the places that you put them at least be decent enough. Let them not Go get diseases Because you are evacuating them and when they were complaining some people were saying is the entitlement Mentality, why would they even complain about what the federal government is giving them? I was asking myself if you have said this xyz amount was voted for that person What did you use the money for if the person that you are giving like the said prisoners for instance is uh Is it 12 000 or so per day that they vote for prisoners and I have been Inside those premises. I have interacted with the prisoners. I have worked With them and among them and I've seen the conditions of living and I don't see a 2000 era That goes to anybody. Yeah, I'm go when you begin to talk about Allocations, but it's it's terrible. You you you're just going to have a blood high blood pressure But when you talk about let's go back to this student situation and the you are talking about the welfare that they saw I think the the incoming president has is what cut out for him because some of the things identified as I said duplicity, you know a conflict of interest you have the minister of foreign affairs, then you have Uh Neymar diaspora commission diaspora commission and then you have the embassy over there who are the officials in that country Supposed to interact with who are they going to have all these negotiations with who should represent Nigeria out there with regards to things like this These may be reasons for all the delay of the bottlenecks And all the shabbiness that we've seen so for every one million naira It is going like four weeks because every of these bodies that you have mentioned will have a share. Yes, so That that explains it. I think that's a good reason that you have said that but Let the next government like you said Look into things like this. This duplicity is really bad But I hope that what was said in potakot will not be repeated in other things What's that like, you know wiki saying We we worked on the federal roads Do well to when you enter Return our money that we used to work on federal roads and the president like said, I owe you nothing You have to love me. You have to love you me to get whatever you want.  That is a question But that let's wait and see how all of that unfolds. They they they know how to settle themselves When the cameras are not rolling. Yeah, but let's just take a look at what has been happening some of the clips that come from are coming from sudan their returnees and Some of them are shot in nigeria and let's just see about the people who are coming back from sudan So we're expecting that what they are against me by them is going to be more claims not just more complaints Because egypt makes it difficult Egypt says if the number of people you brought is less than 200 and the aircraft It can only take 150 then nobody will So they want you to help pick the exact number of people that they are you're bringing into their Order, so if you call them all planes The four planes go at the same time you bring everybody So nemals are sure that They've done that and that's for egypt and the ports of land be Um, they're trying to get tickets Because it's even more difficult to get flights to But they have an airline So they're processing them now get them tickets and they come back home And if other elas get the right I learned it from it At least they're coming back home and nobody will We're glad about this life has been lost and Proud to was given to students women and children So There you have on of our bkw area who's in charge of the commission for Nigerians in diaspora Giving us updates Is she talking for need come or is she talking for the foreign affairs or nima or what was she Is she supposed to be the one to talk and give us updates on all these ones? Well This is nigeria some of the questions being raised. All right The second top trending has to do with the court in lego's grants bail to is indeed were accused of ipop threat He was charged for allegedly threatening to bring the prescribed indigenous people of biafra to the state And well, he's been granted bail and the sum of one millionaire with four suretees All of them must be Resident in lego's and that one of them must have property in lego's So he has to have four suretees and all that I don't even want to comment on on that issue because Well, I don't want to comment on that. Well, the thing is this the dust the dust raised by politicians and the wake of that election that took place is far from settling All right, and we just hope that This income in administration would do all it can To make all Nigerians feel at home. Yeah to put an end to all this ethnicity and Tribalistic sentiments that are doing the country. No good because if we say we are one we must see ourselves as one All right, the the issue he raised even though I said I wasn't going to comment about on that the issue He raised was that The ebosa losing properties Right after the election, it seemed to see if it was a strategic Way of dealing with the people who were not in support of a particular political party and he said Do I need to bring my people? Do I need to bring high pop to come and protect our property? I think it may have been taken out of context But the fact that he mentioned a proscribed Organization that put him in trouble. So that much I can say, okay, it is justified But now that he has been granted bill I hope that they will look at all the sides of the story and see what prompted that Kind of statement in the first place. So even if he's serving jail term Why did he make that statement? Is that statement true?  I wish also that Well inflammatory statements are bad. So whoever makes them Should be seen to have gone through some form form of punishment I wish also that um The person who made a statement that a particular group of people should never come out On the day of election because they don't support him We're just I wish they had taken him to to then grant him bill later We will at least see that they're working. There's justice But you leave one person who Who made statements that influenced the outcome of the election so much whether we like it or not And he's going scot-free and the other person who is crying that things are being done to his people He's a zendibo. So he's responsible for his people and then he's arrested. Well, if it is good to arrest him I don't have a problem with that But if you are arresting him for inflammatory statements arrest everybody that did that even was it festus kiamo No, no Fanny coyote was arrested or at least invited to come and explain why he made some some statements And after that he didn't say anything anymore At least we saw that they were working and they were making sure that people didn't talk carelessly So what what do you do for one person do for another? What do you do to one person do to another as well if they're doing the same things? There is need for social capital Development in nigeria. There is need because we do not want to continue to be divided along different lines 62 years as a country is no joke I think it's enough time for us to be able to have blended in very well and not to be swayed here and there by individual interests 62 years Someone who is old enough And then in nigerian context someone who is old enough to To contest elections because you need to be that old before you contest election. That's matter for another day It is matter for another day if you're watching the breakfast on plus tv africa


So, after you discussed your expectations, let me also share my expectations. I expect all of you at the end of this course to be able to constructively use deep learning to solve real world problems. You will need more courses than just this course, if you want to be a deep learning researcher. It's an introduction to deep learning course, but you should be at the level where you can have fun with it and use it and really solve problems with it. I also hope that you'll be able to see through the hype. Deep learning is not the solution to the pram of how intelligent or the universe works. So I hope you'll see through the hype. And lastly, my expectation is that you will help us to make this course better. Now, as a short edition here, the pandemic is difficult for all of us. It's very difficult for me. I am certain it's going to be difficult for a lot of you. I want to emphasize that the University of Pennsylvania has a lot of useful resources there. They will all be listed in the collabs. If you're at UPenn, use them. They're there for you. But now, let's directly talk about the curriculum. It's an interesting way how we structured that, because in week one, today, we will do alpha zero. In a way, what we try to do is do an advanced topic that uses reinforcement learning alpha zero that gets you to see the big picture of things. Because it's much more fun working on the details and trying to understand the minutia of the system once we have this intuition of how it all works together. So in that sense, that first week serves as an index into the rest of the course where we see the basic logic, we see the big structure. And that will make us be more interested in all the components that are there. Now, in the next four weeks, weeks two to four, we will be talking about the nuts and bolts of deep learning. How do we set up neural networks? How do we use PyTorch? How do we deal with hierarchical, interesting systems? How do we optimize things? How do we make sure that it's properly regularized? Those are the nuts and bolts. That is what makes deep learning work. A lot of it isn't as fancy as say alpha zero, but a true mastery of the nuts and bolts is what makes you effective at solving problems. We will also hopefully get you to understand how to debug the problems that will invariably happen when you use deep learning and that will arguably, in your career, take much more time than the actual building of deep learning systems. Then in weeks six to eight, we will talk about computer vision. We'll learn about confnets, transfer learnings, learning generators of images. Then in weeks nine and 10, we will talk about natural language processing. We'll talk about text, about recurrent neural networks, and how to put it together to work with interesting text data. Then in weeks 11 to 12, we'll talk about reinforcement learning, about deep learning systems that interact with games or more interestingly, with the real world. And then lastly, in weeks 13, we will recapitulate what we have learned so far. So there, we will basically put all the things that we learned so far together to make sure that the things that we learned, that we really don't forget them and that we have full mastery of them. And then for the rest of the term, we'll be working on projects where guided by your TAs, you will all choose some really cool deep learning problems and solve them in the time that you have. So some of you might be interested in, well, I'm actually interested in say reinforcement learning, can I kind of tune out of the early parts of the course? Not like it's reinforcement learning that I'm interested in. The short answer is no to that. And in more detail, deep learning consists of lots of tricks. As we will see today, for example, we use convolutions that are taught as part of computer vision for reinforcement learning tasks. So all these ideas that we have anywhere in deep learning reoccur just about anywhere. And therefore, we want to make sure that as many of these principles of these tricks are taught that you can use them. And they will occur everywhere, both before the lectures that might be most interesting to your topic of interest. And they will reoccur earlier or later in the course. It's really important that you work in great detail through all of them. Without the earlier lessons, you will also miss crucial details in the later ones. So back to you. Discuss with your part what you're most hoping to get out of this course. Which week do you think will be your favorite? And make sure you share that with us. Come back in 10 minutes.


Hello and welcome to this session in which we would look at employee-related liabilities. This is part three of four discussing current liabilities. In the first session we looked at what is the big idea of current liabilities. We defined current liabilities with defined current assets because current assets were needed in order to explain current liabilities and we looked at the operating cycle. In the first session we specifically covered account spayable and note spayable. In the second session we looked at dividend payable, customer advances and deposit, unearned revenue, sales taxes payable and income taxes payable. In this session we would look at the employee-related liabilities. What are the employee-related liabilities and how do they work? The best way to illustrate this concept is to actually look at a simple paycheck. For example this paycheck in here the individual worked for 50 hours, they earn $50 an hour, so the total current earnings is $2,500. Now in financial accounting what we learned is we debit wages expense $2,500, we credit cash $2,500 and this is what we learned in our financial accounting or introductory accounting course. Well in the real world this does not happen. In the real world what happened is the employee will have to pay their taxes. So what's going to happen the employee will have to pay certain taxes which we're going to be covering in this session such as FICA Medicare tax for example $36 this period and so far this employee paid $1,631.25 FICA Social Security tax $155 and this employee paid so far $6,975 federal tax California state tax which is state tax SDI I believe this is state disability insurance tax so on and so forth. We could have more deductions then the employee will have a net pay so notice they were paid $2,500 this is the gross amount then they deducted $959.19 from their paycheck and the cash that they receive is $1,514 therefore the cash has to be $1,540.81 and those remaining deductions that they were taken away from the employees those will be various liabilities for the difference. So simply put amount owed to employees for salary and wages are reported as current liabilities so those amounts the deductions that the employer took from you for the employer those are liabilities so current liabilities could include obviously payroll deduction of course that's the biggest one that's including taxes for example notice here we took taxes and we could have many type of taxes we could have federal taxes as you notice in this paycheck they took federal taxes we could have state taxes which is for the state and in some states we could have local taxes for example in Pennsylvania we have a local tax for example there is no local tax in New Jersey but there is a local tax in Pennsylvania also the employee will pay federal insurance contribution act FICA social security we're going to talk about this a little bit more in details the employer the employee also pay FICA Medicare notice here FICA SS FICA Medicare and we could have other taxes they also the employee could pay insurance from their paycheck they can have savings taken out from their paycheck they can have 401k deductions taken out from their paycheck whatever they want to have taken out from their paycheck the employer with what hold but it will be considered for the employer a current liability a current liability let's talk about let's start to dive into each one of those FICA starting with FICA FICA med F federal insurance contribution act the federal country the federal insurance contribution act has two parts social security and Medicare and notice here on the paycheck if you notice here let me highlight this in yellow maybe maybe it will stand out notice we have two FICAs we have FICA med and FICA SS so it has two parts FICA Medicare and FICA social security now the social security is also known as the old age survivor and the civility insurance or OASDI not O OASDI just know that it's it has another name now when the social security started social security started in 1937 after the great depression now why is that important it's important to understand the purpose of social security the purpose of social security is once an employee retires once they reach a certain age they can have they can receive a paycheck from the government it's not really from the government it's their money but think of it as a government sponsored employee retirement plan think of it that way so basically you pay to the system now you will get money when you retire this is this is the purpose of social security and the reason it came after 1937 after the great depression because in the great depression many people lost older savings lost their savings as a result the government says we need a solution for this and the solution is to is to have a government sponsored retirement plan where at least the employee even if they don't save privately the government will help them will help them when they retire so who pays social security obviously you just saw the employee pays social security but we what you did not see yet is also the employer pays social security so two parties pay social security and you're going to see how in a moment the employee as you saw on the paycheck pay social security also the employer will pay the same amount simply put let me just kind of plan the seed here you notice here that the employee paid 155 dollars this period the employer which is you don't see on the paycheck will have to come up with 150 dollars you don't see it we're going to talk about it later so the employer also pay how much do they pay how much do you pay in social security well there's a rate the rate is 6.2 percent well let's see if that's let's see if this rate is correct so if the employee earned 2500 this period and we multiply this by 6.2 percent we'll get we'll get 155 dollars so how did you come up with this 155 dollars we multiply this amount by 6.2 the gross wages and we come up with 155 dollars so the rate is 6.2 percent this could change but usually it does not change up to a limit what do we mean by a limit this is important in 2021 the tax limit is 142 dollars and 800 dollars what does that mean it means if this is zero wages as long as the employee have not reached this is the limit 142 dollars 800 dollars and this is the limit specifically in year 2021 the employee will keep and the employee and the employer will keep paying social security so simply put to tell you to tell you in another way so the maximum social security an employee pays per per year employee as well as employer because they have to pay the same thing if we take 142 800 times 6.2 percent is 8853 dollars and 60 cents so this is the maximum why because once the employee earned more than 140 to 800 they stopped paying social security so the social security tax stops at some point when that employee reaches certain amount now in 2022 the raising the limit to 147 so in 2022 the raising the limit to 147 what does that mean it means the government wants to collect more money from people how do they do it they raise the limit but at some point you stop paying social security and the reason is you stop paying social security because when you take out your social security money when you're retired you are limited to a certain income that's why your deduction is limited and your contribution is limited your contribution is limited how much you contribute is limited and your income is limited so that's very important to understand when it comes to social security and very important to understand the idea of a limit in other words you don't keep paying social security forever so for example bill gates only pay 8,853 and 60 cents although they could be making millions of dollars let's assume in wages which it and someone else who only made $150,000 per year will pay the same amount because they're above the limit so they stop paying social security now what's the limit in 2023 it's really unknown why because the limit changes every year and definitely you would expect that limit to go up with inflation or government need of income or whatever the reason is so but the limit changes from year to year so if you're looking in your textbook now the limit might be different so this is about FICA Insurance Contribution Act part one of two the second part is Medicare before we talk about Medicare I would like to remind you that whether you are an accounting student or a CPA candidate to look at my website farhatlectures.com I don't replace your CPA review course if you're studying for your CPA or your accounting course I'm a useful addition think of me as a vitamin pill for your education for your CPA exam preparation I explain the material differently I provide you additional resources CPA exam questions multiple choice true false to help you understand the topics better your risk is one month of subscription to give me a try try it if you see it's helping you you keep it if not you cancel your potential gain is improving your performance if not for anything take a look at my website to find out how well or not well your university the wing on the CPA exam this is a list of all my accounting courses managerial accounting advanced accounting cost accounting governmental accounting so on and so forth my CPA exam modules are aligned with your becker roger wiley gleam so it's very easy to go back and forth between my material and your CPA review course I also give you access to the 1500 previously released AI CPA questions with detailed solution you have not connected with me on LinkedIn please please do so take a look at my LinkedIn recommendation like this recording share it with other connect with me on Instagram Facebook Twitter and Reddit now let's go ahead and take a look at the second part of FICA which is part two of two which is FICA Medicare FICA Medicare started in 1965 and the reason is the government had so much money in the federal insurance contribution act so they wanted to have another spending spree it's also known as the hospital insurance and the purpose of it is very important to understand is to help retirees with medical expenses so once you retire they will help you with medical expenses so who pays that Medicare who pays FICA Medicare well also the employee and the employer just like just like social security both pays Medicare it's very important to see this how much do you pay well the rate is 1.45 1.45 percent and there's no limit what does that mean well let's go back to that paycheck to show you how FICA Medicare is computed and I hope they computed it the right way remember when we computed social security we took 2500 times 6.2 we're going to take 2500 now and multiplied by 1.45 percent and let's do that let's do that and see if they computed Medicare correctly and it's 36 dollars and 25 cent and this is how they come up with this figure 36 dollars and 25 cent now the difference between Medicare and Medicare and social security is Medicare has no limit what does that mean it means whether you earned 10 000 or whether you earned 10 million dollars you keep paying 1.45 percent now why is Medicare different than social security well let me maybe maybe if I explain it to you you will remember it rather than memorizing it because when you retire we don't know how much you're going to have in medical expenses the government don't know whether you're going to incur zero dollar or one hundred million dollars so what happened is you keep paying and some people are healthy they don't need the money and some people they are ill and they will need the help so simply put there's that's why there's no limit in contrast to social security now bear in mind the total FICA the total FICA is 7.65 why 6.2 for social security and 1.45 for Medicare so total is 7.65 so on your textbook certain textbook the way they do it they break down the social security and the Medicare and in some textbook they combine them for the purpose of my lecture I'm going to combine them in one example then in another example I'm going to separate them but you have to understand the difference between the two so 7.65 remember that 7.65 times 2 because the employer also pays 7.65 let's talk about other withholding and income tax withholding now employers your company is required to withhold federal state and in some places local income taxes from your wages who pays this income tax you pay it the employee pays their income tax withholding how much do they pay well it depends for federal depending on your w4 withholding there's a form you fill out you fill out when you are hired now if you want to see this form how it's work go to my income tax course the far hat lectures and also you have to pay state and local for example in pennsylvania we have a local tax usually that tax is flat flat rate it means one two three percent flat rate and it's different for each state and obviously it's different in pennsylvania for each locality and just to show you the sample example of the income tax withholding let's go back to that paycheck that we were we are looking at notice here they have california state tax of 183 dollars and 76 cents i'm not really sure how they came up with this and there's a federal state tax it doesn't have to be flat it could be progressive i'm just saying most states as flat where i where i live in pennsylvania it's a flat rate so maybe in california it's not but the point is they take money away from your paycheck and notice here we have sdi i believe this is state disability insurance you pay it in california each state has will have different withholding so simply put as you can see your paycheck you have a lot of money deducted from your paycheck that you will see that clearly now what you don't see is there are certain taxes that you don't see on your paycheck but they are but they are paid by your employer one of those taxes is called state unemployment or state unemployment tax act or known as sura not sura sura we're going to look at sura in a moment sura what is the purpose of sura state unemployment tax act the purpose is to compensate the employee they pay the employee when they are laid off or let go so an economic downturn companies may lay off some employees as a result the the government says well since you lay off the employees you need to kind of have some sort of an insurance or social insurance production and this is the social insurance production you might get paid for a year and when we had the last downturn this state unemployment tax went for longer than a year who pays this tax well the employer now inserting state and pennsylvania happens to be one of them also the employee pay a small part but for most tax book and for most states the majority of the state only the employer pays this tax how much do you pay so how much do the employer pay well since it's a state tax it will be different the rate is different in each state and guess what the rate is different for each employer in each state what does that mean well it means one company could be paying four percent another company could be paying two percent another company could be paying five percent within the same state now bear in mind there's a limit in other words you don't keep paying that percentage forever usually the limit is seven thousand or eight thousand but each state is different it means once you once your employer each asserting amount of wages you stop paying state unemployment tax it's a merit system merit system means depending on your company you could be paying two you could be paying five what does it depend on if your company keeps on laying off people letting people go then you are using this social insurance program if you're using the program you have to contribute more if your company don't lay off employees and they keep paying into the system your rate will go down and this is what we mean by a merit system for example in pennsylvania if when i was in practice you would start at three point seven then it might go up it might go down so it doesn't matter what you start with what matters is what's going to happen next if you don't lay off employee the state would say well you are not using the system you should not be paying more taxes less taxes then we have food a federal unemployment tax act it's also an unemployment federal it's a bit it's an unemployment federal insurance program so we have you're saying we have a state and a federal yes the federal is to administer help and help the state when needed and some in some years the state my my run out of funds so as a result we have a federal insurance program where the federal government will will help the state to pay for their employees because they run out of money who pays the stacks who pays food employer employer pays food and not employee how much do they pay well the official rate i'm gonna put the official rate so if you look at the form the official rate is six percent then again this could change from year to year but right now the rate is six percent then the employer gets a credit up to five point two percent so what does that mean it means when you start the form you said yet well you have to pay six percent and at some point they'll ask you are you paying your state unemployment as a company and you would say yes i am in good standing as a result okay we're gonna deduct five point two percent and now you are responsible the net rate for the food is point eight percent what does that mean it means they will give you a credit remember the federal and the state are the reason for the state for the federal program is to assist the state so if you are paying your state unemployment dues and most companies do well guess what the government says well we're only gonna charge you point eight percent we're gonna give you a credit so let's take a look at a summary who pays what employee pays their income tax withholding of course they paid their phyka social security they paid their phyka medicare they paid their medical insurance they pay their unions they pay they might have they may participate in charity they may pay their 401k this is what are some possible deductions okay could be unlimited okay now what what do the employer pay the employer pay phyka social security and phyka medicare so simply put those two whatever the employee pays the employer will have to come up with the same amount so if you end up paying a thousand dollar that's what your paycheck is showing what's not showing is your employer will have to come up with the same amount of money then the employer will pay furath federal unemployment tax and they will pay suda state unemployment tax now the best way to illustrate these is to look at a simple example and the reason i say simple example because i am not going to be using the limit so i'm going to stay away from the limit for this example don't worry i have another example where you are required to know how the limit worked but for now it's i'm going to keep it simple because you know when i introduce the topic get a keep it simple so students can follow adam company had a weekly payroll of 20 000 entirely subject to phyka and medicare so what i did is i said you know so so those employees that earn 20 000 remember there's a limit they are all below the limit none of them reach the limit so that's why the full amount is subject to phyka social security and obviously there is no limit for medicare so they have to pay 7.65 the federal unemployment rate is 0.8 and the state happens to be 5 income tax withholding from more employees is 3 500 and the employees deducted health insurance of 1 600 that's all what we have we don't have a 401k we don't have any savings account that's those are the savings so keeping it simple those are the deduction keeping it simple so what entry would the employee makes well they paid the employee 20 000 they will debit salaries expense and wages 20 000 then they're going to start to take out the taxes withholding taxes payable 3 200 so the employee contributed 3 200 therefore we're going to credit 3 200 for withholding taxes payable could be federal state whatever then we're going to withhold phyka taxes phyka social security taxes phyka taxes we're going to combine both so notice where did i combine both so this is 6.2 for social security 1.45 for medicare together 7.65 and we're going to take out 15 30 but remember in the real word they break them down okay they break them down medical insurance the employee contributed 1 600 so those are the withholding so what's going to happen the employee will get a check the employees this is for many employees will get a check of 13 670 and we this could be one employee for that matter this could be one employee or could be the whole payroll it doesn't matter the entry is the same but the point is the net amount the take-home amount is 13 670 are we done yet no we're not every time we pay the employees the employer will have a liability what does that mean a liability of what a liability of paying taxes what is the employer liability well the employer liability is 2690 how did we come up with this number well let's see first the employee the employer will have to match social security we have to match we'll have to match social security so notice here the employee paid 15 30 in social security right here the employer will have to come up with the same amount responsible for the same amount and that's why self-employed people if you are self-employed you pay both if you're self-employed you pay both so if you're self-employed technically your FICA rate is 7.65 times 2 why because you are the employee and the employer now you will get a deduction but again this that's a different topic yeah that's covered in my tax course but as an self-employed you pay both now we have footer footer is 0.8 percent so 20 000 times 0.8 percent the employer is responsible for 160 and we have that's footer and we have suda 5 which is a thousand dollar so if my math is right and we add up those three figures the employer is responsible there's a payroll tax expense of 2690 so they paid you 20 000 they paid the employees 20 000 then they are responsible for 2690 for the government on your behalf because they are the employer they are required to do so now what's the best way to learn this once again i'm going to work an exercise with limits so very important to understand how the limits work i ignore the limit here also it's very important to go to my website and start to work multiple choice questions to consolidate this knowledge at the end of this recording i'm going to remind you whether you are an accounting student or a cpa candidate you're going to invest in your cpa and your accounting career once for a lifetime invest wisely don't shortchange yourself the cpa exam is worth it invest in yourself invest in your career invest in your certifications you have to pass them once you put them behind you you focus on your career and they will pay dividend forever good luck study hard and of course stay safe