Gross Pay/Net Pay

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What is Gross Pay?

Back

Gross Pay is the total amount of money earned by an employee before any deductions are made.

Tags

CCSS.7.RP.A.3

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What is Net Pay?

Back

Net Pay is the amount of money an employee takes home after all deductions, such as taxes and insurance, have been subtracted from Gross Pay.

Tags

CCSS.6.RP.A.3D

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What does FICA stand for?

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FICA stands for Federal Insurance Contributions Act, which includes Social Security and Medicare taxes.

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What is the purpose of Federal Income Tax?

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Federal Income Tax is a tax levied by the federal government on an individual's income to fund government services and programs.

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Do employees in Florida pay State Income Tax?

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No, employees in Florida do not pay State Income Tax.

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What is the Medicare tax rate?

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The Medicare tax rate is 1.45% of an employee's gross pay.

Tags

CCSS.7.RP.A.3

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What is Social Security tax?

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Social Security tax is a federal tax that funds the Social Security program, providing benefits for retirees, disabled individuals, and survivors.

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How do you calculate Net Pay?

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Net Pay is calculated by subtracting all deductions (like taxes and insurance) from Gross Pay.

Tags

CCSS.6.RP.A.3C

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What is a common deduction from Gross Pay?

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Common deductions from Gross Pay include Federal Income Tax, State Income Tax, Social Security Tax, Medicare Tax, and Health Insurance premiums.

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CCSS.6.RP.A.3B

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If an employee's Gross Pay is $1,500 and their total deductions are $350, what is their Net Pay?

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Net Pay = Gross Pay - Total Deductions = $1,500 - $350 = $1,150.

Tags

CCSS.7.EE.B.3