Understanding Your Paycheck
The total amount of money you earn before any deductions.
What is gross pay
These are amounts subtracted from your paycheck for taxes, insurance, and benefits
What are deductions
A full-time workweek typically includes this many hours
What is 40 hours
This employer-sponsored retirement plan allows you to save pre-tax income.
What is a 401(k)
You earn $12/hour and work 40 hours. What is your gross pay
What is $480
The amount of money you actually take home after deductions
What is net pay
Deductions required by law, like Social Security and Medicare, are called this
What are mandatory deductions
An employee who works fewer than 30 hours per week is considered this type of worker.
What is part-time
Many employers encourage saving for retirement by offering this type of contribution match
What is an employer match
You earn $15/hour and work 45 hours. Your company pays 1.5× overtime. What is your total pay
What is $712.50
This term shows how much you’ve earned from the start of the year up to your most recent paycheck
What is year-to-date (YTD)
Deductions you choose, such as retirement savings or health insurance, are called this.
What are voluntary deductions
Working more than 40 hours in one week earns this type of extra pay.
What is overtime pay
This employer-sponsored retirement plan allows you to save pre-tax income and is specifically for Government employees
403(b)
Your gross pay is $500, and your deductions total $95. What is your net pay
What is $405
This document lists your pay, taxes, and deductions for each pay period
What is a pay stub
This deduction funds retirement and disability income for eligible workers.
What is Social Security tax
The formula for finding gross pay is this
What is Rate × Hours Worked
You may choose this type of voluntary deduction to help fund your retirement
What is a 401(k) contribution
If your YTD earnings are $20,000 and you earn $1,000 this week, what will your new YTD total be
What is $21,000
This form, received each January, reports your annual earnings and taxes withheld
What is a W-2 form
This deduction helps pay for healthcare for older Americans.
What is Medicare tax
This type of work allows individuals to complete short-term tasks or projects, often through platforms like Uber, DoorDash, or Fiverr, rather than being employed full-time by a single company
What is a gig job
The money you will receive after you retire is known as this.
What is retirement income or pension
Your gross pay is $1,000. You pay $62 for Social Security, $14.50 for Medicare, and $100 for income tax. What is your net pay
What is $823.50