Understanding a Paycheck and Pay Stub

Explain what deductions are and how they affect a worker's paycheck.

Deductions are amounts of money subtracted from a worker's gross pay. Some deductions are mandatory while others are optional/voluntary.

What is a basic definition of disposable income?

Disposable income is the amount of money remaining after taxes have been deducted that a person can spend as he/she wishes.

Explain the difference between gross pay and net pay.

Gross pay is the amount of money a person earns before any deductions are subtracted. After all the deductions are taken out of a worker's gross pay, the amount left over is called net pay.

deduction

any amount of money subtracted from your check

Which of these is the amount of money that remains after taxes have been deducted that a person can save or spend as he or she wishes?

disposable income

pay stub

explains how much money was earned and the types of deductions and amounts withheld from a worker's paycheck

List two deductions that are mandatory.

federal income tax, state income tax, local and or city income tax, FICA taxes, Medicare, Social Security

Multiplying a worker's hourly wage amount and hours worked per pay period equals?

gross pay

Which of these is an optional/voluntary deduction?

healthcare insurance

A fixed amount of money per year paid to an employee to do a job is known as a _________?

salary

What is gross pay?

the amount of money earned before any deductions are subtracted

disposable income

the amount of money remaining after taxes have been deducted that a person can spend as he/she wishes

net pay

the amount of money you earn after deductions are subtracted

gross pay

the amount of money you earn before deductions are subtracted

What is a pay period?

the number of days an employee works and is paid for each paycheck

overtime

time worked beyond an employee's regular hours