Paycheck Vocab
The total amount of money earned during the pay period before deductions is called...
Gross pay
This is the largest deduction taken from an employee's gross income. The amount taken is determined by the amount of money earned and the info provided on your W-4.
Federal Income Tax
Charges that are imposed on citizens by local, state, and federal governments used to fund public goods and services are called...?
Taxes
Most common payment method. Employer physically provides the employee with this when it's payday. The employee is responsible for handling it.
Paycheck
If Thomas earned $6.00 per hour and worked 15 hours this pay period, what would his gross pay be?
$90
The amount of money left after all the deductions have been taken from the gross pay is called...
Net pay
This deduction from a person's paycheck is used to assist in funding government agencies within the state.
State Income Tax
If you buy a shirt you will be charged this tax (Except these states: Alaska, Delaware, Montana, New Hampshire, Oregon...
Sales tax
A method of payment. Paycheck is electronically submitted into your bank account from your employer.
Direct deposit
Sarah worked 85 hours in the last pay period and she earns $18.00 per hour. What is Sarah's gross pay?
$1,530
Totals of all the deductions which have been withheld from an individual's paycheck from Jan. 1 to the last day of the period on the paycheck stub.
Year-to-date
Name one state that doesn't have State Income Tax.
Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, or Wyoming.
If you own a home or land you will be charged ________ tax.
Property
On your paystub. This section lists all "subtractions" take from your gross income including income taxes, payroll taxes, etc.
Deductions
Calculate Liam's Social Security deduction, which is 6.2% of his gross pay. Liam worked 95 hours and was paid $15.00 per hour.
$88.35
The length of time for which an employee's wages are calculated, usually weekly, bi-weekly, twice a month, or monthly.
Pay period
The nation's retirement program. This tax helps provide retirement income for the elderly and pays disability benefits.
Social Security
_____ taxes are those collected from the seller and are often hidden in the price. Ex. gas, hotel rooms, cigarettes.
Payment method. A prepaid card that is offered to employees as an alternative.
Liam worked 95 hours and was paid $15.00 per hour. Calculate Liam's Medicare deduction which is 1.45% of his gross pay.
$20.66
Section on pay stub where your name, your address, social security or employee ID number is.
Personal information
The nation's healthcare program for the elderly and disabled. This tax provides hospital and medical insurance to those who qualify.
Medicare
What is one of the mandatory payroll tax deductions?
Social Security or Medicare
This form determines the percentage of gross income to be withheld for taxes. Also known as an employee withholding allowance verification.
W-4
Sarah works 85 hours each month and is paid $18.00 per hour. Sarah's Social Security deduction which is 6.2% of her gross pay and her Medicare deduction, which is 1.45% of her gross pay. What is the amount of her total deductions?
Gross pay = $1,530
Social Security deduction = $94.86
Medicare deduction = $22.19
Total deductions = $117.05