Paycheck

Front

What is the term for the amount of money you actually receive after deductions from your gross pay?

Back

Net Pay

Front

If Melinda’s gross pay is $570 and the Social Security tax is 6.2%, how do you calculate the amount she pays in Social Security?

Back

Multiply $570 by 0.062 to get $35.34.

Front

What are deductions in the context of a paycheck?

Back

Deductions are amounts subtracted from your gross pay for taxes, social security, and insurance.

Front

How do you calculate the amount deducted from a paycheck if you know the gross pay and net pay?

Back

Subtract the net pay from the gross pay.

Front

What does YTD stand for in payroll terminology?

Back

Year to Date

Front

What is gross pay?

Back

Gross pay is the total amount earned before any deductions are made.

Front

What is the purpose of Social Security tax?

Back

To fund the Social Security program, which provides benefits for retirees, disabled individuals, and survivors.

Front

What is the formula to calculate net pay?

Back

Net Pay = Gross Pay - Total Deductions.

Front

What types of deductions might be taken from a paycheck?

Back

Common deductions include federal and state taxes, Social Security tax, Medicare tax, and health insurance premiums.

Front

How can you determine the total deductions from a paycheck?

Back

Add up all the individual deductions listed on the pay stub.