Paycheck Basics
The amount of money you earn before taxes and deductions.
What is gross income
This federal program provides retirement income once you reach a certain age.
What is Social Security
The first thing most people think of when choosing a job.
What is salary/pay
Besides salary, employers often provide things like health insurance or paid time off. What are these called?
What are benefits
Your friend brags about their $80,000 salary, but after taxes they only take home about $60,000. What’s the $60,000 called?
What is net income
The amount you actually take home after deductions.
What is net income
This program provides healthcare coverage mainly for retirees.
What is Medicare
One non-income factor you should consider when taking a job.
What is location, schedule, work-life balance, job growth, company culture, etc.
This type of insurance benefit helps cover costs if you get injured and cannot work.
What is disability insurance
You get your first paycheck and it’s smaller than expected because money was taken out for taxes. What are these amounts called?
What are deductions
The form your employer gives you at the end of the year to file taxes.
What is a W-2
Taxes that fund things like schools, police, and local services.
What are state or local taxes
A short-term job experience that helps you learn about a career without long-term commitment.
What is an internship
A retirement savings plan offered by many employers.
What is a 401(k)
You normally earn $12/hour. One week you worked 45 hours. What kind of pay would you get for the extra 5 hours?
What is overtime pay
A worker paid a fixed yearly amount instead of by the hour is said to earn this.
What is a salary
If your gross pay is $1,200 and deductions are $300, what’s your net pay?
What is $900
This type of pay is based on a percentage of sales.
What is commission
A benefit that helps you save money for the future while working, and is often matched by your employer, is called this.
What is a retirement plan
You are comparing two jobs: one pays $50,000 with no benefits, the other pays $48,000 with full health insurance and a retirement plan. Which might be the better choice and why?
The $48,000 job, because benefits can be worth thousands of dollars.
If you are paid $15/hr and work 40 hours a week, what is your gross weekly income?
What is $600
List two optional deductions that might come out of your paycheck.
What are health insurance, retirement contributions, union dues, etc.
The demand for workers in a specific career compared to the number of people qualified for those jobs is called this.
What is the labor market (supply and demand for jobs)
If your employer matches 50% of your retirement contributions up to 6%, how much would they contribute if you put in $200?
What is $100
John is offered a sales job where his income depends on commission. Name one advantage and one disadvantage of this type of pay.
Advantage = unlimited earning potential; Disadvantage = unstable income.