Chapter 4: Take Home Pay
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gross pay
amount of money earned by an employee
net pay
amount of money received after deductions have been taken
witheld
kept out; for example, money withheld from salary
social security (FICA)
money paid to a federa plan that helps support older people
medicare
money paid to a federal plan that helps pay medical expenses for older people
federal income tax
money paid to the United States Treasury
state income tax
money paid to your state treasury
deduction
money taken from gross pay for things such as taxes, health insurance or union dues
