EARNING INCOME
What is income
Money a person receives from working, investments, or other sources.
What is gross pay?
The total amount earned before deductions.
What is an employee benefit?
Compensation or services provided by an employer in addition to regular wages or salary.
What is a tax?
Money collected by the government to pay for public services and programs.
What is one reason people work besides earning money?
To gain experience, develop skills, help others, pursue interests, or find personal fulfillment.
What is the difference between a wage and a salary?
A wage is usually based on hours worked, while a salary is a fixed amount paid over a set period.
What is net pay?
The amount of money you actually take home after deductions.
Which benefit helps employees pay for medical expenses?
Health insurance.
What is federal income tax?
A tax on income collected by the federal government.
How can education affect earning potential?
Education or training can help someone qualify for jobs requiring specialized knowledge or skills.
If you earn $15 per hour and work 20 hours, how much is your gross pay?
$300
If your gross pay is $1,000 and $250 is deducted, what is your net pay?
$750.
What is paid time off, or PTO?
Paid time away from work, such as vacation, sick days, or personal days.
What does FICA help fund?
Social Security and Medicare.
What is job security?
The likelihood that a person will be able to keep their job.
What is overtime pay?
Extra pay earned for working beyond the standard number of hours, often at a higher rate.
What is a paycheck deduction?
Money taken out of your paycheck for things such as taxes, insurance, or retirement contributions.
What is a retirement plan?
A program that helps employees save money for their future after they stop working.
Why is your net pay lower than your gross pay?
Taxes and other deductions are taken from your gross pay.
Why should someone consider benefits when comparing two jobs?
Benefits can add substantial value to total compensation.
Name three factors that can affect how much money someone earns.
Education, experience, skills, occupation, location, demand for the job, and level of responsibility.
Why is it important to understand your paycheck?
It helps you understand where your money is going and plan your budget accurately.
Why might someone choose a job with a lower salary but better benefits?
The benefits may provide significant financial value, such as health insurance, retirement contributions, paid leave, or tuition assistance.
True or False: If two people have the same gross salary, they will always have the same net pay.
False. Their deductions, benefits, tax situations, and other factors may differ.
Besides salary, name four things someone should consider when choosing a career.
Benefits, work-life balance, job duties, education requirements, job security, work schedule, location, advancement opportunities, and personal interests.