career tech

bi-weekly

every 2-weeks with 26 pay periods per year

hourly wage- a specific rate of money per hour worked that is paid by an employer. salary- a fixed amount of money paid to an employee to do a job.

explain the difference between an hourly wage and a salary

deductions are amounts of money subtracted from a workers gross pay. after all deductions are subtracted, the amount that is left is called the net pay

how do deductions affect the amount of a paycheck?

positive benefit: employees receive the same amount each paycheck. employees can depend on it. negative feature: many employees work more than a typical 40 hour week without overtime pay.

name on positive and one negative feature about being paid a salary.

monthly

once per month with 12 pay periods per year

weekly

once per week with 52 pay periods per year

semi-monthly

twice per month with 24 pay periods per year

federal income tax and state income tax

what are two mandatory deductions?

they are federal, state, and local taxes, and FICA taxes, which are social security and medicare. these deductions are required of most employees.

what deductions are required of most employees by U.S. law?

FICA stands for Federal Insurance Contributions Act. the two taxes that make up FICA are social security and medicare.

what is FICA and what two taxes make up FICA?

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

what is a basic definition of disposable income

based on the employer experience, and skill level of the worker

what is the amount of a worker's wages based on?

pay period- the number of days an employee works and is paid for each paycheck. payday- the day a person is paid

what is the difference between a pay period and a payday?

gross pay-the amount of money a person earns before any deductions are subtracted. net pay- the amount that is left after all the deductions are taken out of a worker's gross pay

what is the difference between gross pay and net pay?

it establishes that overtime pay is at a rate not less than one and one-half times the regular rate of pay and is required for hours worked over 40 hours per workweek.

what rule about overtime does the Fair Labor Standards Act establish?

it lists the types of deductions and amounts withheld from a workers gross pay. additional information, such as a worker's number of sick days and vacation days may also be listed.

what type of information is included on a paycheck stub?

employee healthcare or insurance payments, union dues, savings deposits, retirement contributions, and charitable contributions

what types of deductions are optional?

for accuracy and keep them to compare to the W-2 tax forms that employers must provide workers for income tax returns.

why should workers carefully check their paycheck stubs?