NGPF 1.1
Paycheck Stub
A document attached to every paycheck that details your earnings and the amount withheld for taxes, health insurance, retirement funds, etc.
Social Security
A federal program that provides monthly benefits to millions of Americans, including retirees, military families, surviving families of deceased workers, and disabled individuals
Roth IRA
A personal savings plan; contributions are not tax-deductible; earnings are tax-free
Net Pay
Amount of income left after taxes and deductions have been taken out.
Pre-Tax Deductions/Contributions
Contributions taken out of your paycheck BEFORE taxes are calculated on your income
FICA
Federal Insurance Contributions Act
Payroll Tax
Federal and state taxes that all employers must pay, based on a percentage of the employee's salary, toward social services such as Social Security and Medicare
Health Insurance
Insurance that covers medical illness or injury.
Discretionary Spending
Spending by the federal government determined by legislative action and approved through votes by elected officials
Mandatory Spending
Spending by the federal government required by previously existing laws, including funding programs like Social Security and Medicare/Medicaid
Post-Tax Deductions
These deductions are taken from earnings after disposable pay is calculated.
401(k) plan
a tax-deferred retirement plan offered to employees by their employer
Gross Pay
the total amount of an employee's earnings before deductions are taken out