Personal Financial Literacy: My Paycheck

Diana's gross pay was $890 and her total deductions were $89. What is her net pay?

$801

Medicare

A federal program that pays for health care for people age 65 and older.

Deduction

An amount that is subtracted.

Gross Pay

Earnings before deductions for work or from other sources, such as rent or investment.

A paycheck stub documents just your gross pay.

False

FICA

Federal Insurance Contributions Act, more commonly known as Social Security; a portion of wages is withheld and sent to the government trust fund and set aside for retirement benefits.

Employee Benefits

Perks (extra benefits) that a company provides their employees; may include paying for health insurance or providing a retirement plan.

What should you do with your paycheck stub?

Save it for your records.

Net Pay

Take-home pay; the portion of the wages that the employee actually gets to take home.

A group health plan that saves you money on health insurance is an example of a/an _____.

employee benefit

When weighing your employment options, consider _____.

employee benefits