Gross Pay
Pay based on an hourly rate is called _______.
wage
This is the money you take home after deductions.
Net Pay
The budgeting strategy that splits income into 50% needs, 30% wants, 20% savings.
50/20/30
Money earned before deductions.
Gross Pay
If I receive 26 paychecks in a year, how often am I getting paid?
Bi weekly
Pay that stays the same each pay period, no matter the hours worked.
Salary
This deduction pays for retirement and disability benefits.
Social Security
The budgeting method that gives every dollar a specific purpose.
Zero based budgeting
Another term for "Take Home Pay"
Net Pay
What does "pay period" mean?
The length of time between paychecks
Hours worked over 40 in a week are called _______.
The deduction that funds health insurance for seniors.
Medicare
This budgeting system uses cash in separate categories to control spending.
Envelope system
Extra pay for working more than 40 hours a week.
Overtime pay
True or False: Net pay is always higher than gross pay.
False
Overtime is usually paid at what rate?
Time and a half (1.5)
Which deduction goes to both the federal and state governments?
Income tax
In the 50/20/30 rule, what percentage is for savings and debt repayment?
20%
Deductions like health insurance or retirement that employees choose.
Voluntary deductions
What are the 4 pay periods and how many paychecks are in each period?
Monthly - 12
Semi Monthly- 24
Bi weekly - 26
weekly - 52
If you earn $12/hour and work 45 hours, how much do you earn before deductions?
$12 × 40 + $18 × 5 = $570
If gross pay is $500 and deductions are $120, what is net pay?
$380
If you make $2,000 a month, how much would go to "wants" using the 50/30/20 rule?
$600
Any money taken out of your paycheck.
Deductions
If you want to increase your net pay, what’s one option?
Reduce voluntary deductions or work overtime