Gross vs. Net Pay
This is the amount you earn before deductions.
Gross pay
A deduction is a ____________ from your paycheck
Withdrawal
Your gross pay for the week is $1,200. If 1.45% of your earnings are deducted for Medicare, how much is deducted?
$17.40
Why is it called a 401(k)?
Section 401 subsection k of the IRC
Sarah earns $850 per week. Her paycheck has the following deductions: Social Security 6.2%, Medicare 1.45%, Federal income tax 10%, State income tax 4%. What is her net pay?
$665.97
This is the amount you actually take home after deductions.
Net pay
This deduction goes to the US government to fund programs
Federal tax
You earn $850 this pay period. Social Security takes 6.2% of your gross earnings. How much will be deducted for Social Security?
$52.70
At what age can you start collecting without penalty from your 401(k)?
59 and 1/2
James earns $1,650 every two weeks. His paycheck has the following deductions: Social Security 6.2%, Medicare 1.45%, Federal income tax: 10%, State income tax 4%. What are the sum of the deductions?
$357.22
If your gross pay is $1,284 and your deductions total $297 what is your net pay?
$987
This deduction goes to the government of NY for us
State tax
Your gross biweekly pay is $1,650. If 5% of your earnings are withheld for New York State income tax, how much will be deducted?
$82.50
What percent penalty do you pay for drawing on a 401(k) before the retirement age?
10%
Emily earns $2,400 per paycheck. Her deductions include: Social Security 6.2%, Medicare 1.45%, Federal income tax 12%, State income tax 4%, 401(k) contribution 5%. What are the sum of her deductions?
$687.60
If your net pay is $500 and deductions are $120, what is your gross pay?
$620
This deduction funds income for adults over 62 and others who qualify
Social Security
You earn $2,400 in gross pay this pay period. If 10% is withheld for federal income tax, how much will be deducted?
$240
If you contribute $1500 to a 401(k) and your employer offers a 50% match, how much does your employer also contribute?
$750
Michael earns $3,200 per paycheck. His employer deducts the following: Social Security 6.2%, Medicare 1.45%, Federal income tax 15%, State income tax 5%, 401(k) contribution 4%, Health insurance $85 (fixed amount). What are the sum of his deductions?
$1,097.80
If your gross pay is $600 and your net pay is $491, what did your deductions total?
$109
This deductions funds health insurance for adults over 65 and others who qualify
Medicare
You earn $1,100 this week. If 1.45% is deducted for Medicare, how much money is deducted?
$15.95
With a 401(k) you are taxed after and with a Roth 401(k) you are taxed before
Taylor earns $4,500 per paycheck. Her deductions include: Social Security 6.2%, Medicare 1.45%, Federal income tax 18%, State income tax 5%, Retirement contribution 6%, Dental insurance $25, Health insurance $110. What are the total deductions?
$1,784.25