Financial Literacy Flashcard

Front

What is gross pay?

Back

Gross pay is the total amount of money earned by an employee before any deductions such as taxes, retirement contributions, and health insurance.

Front

What is net pay?

Back

Net pay is the amount of money an employee takes home after all deductions have been subtracted from gross pay.

Front

What is the difference between gross pay and net pay?

Back

Gross pay is before deductions, while net pay is after deductions.

Front

How often is 'biweekly'?

Back

Biweekly means every two weeks.

Front

What does net salary refer to?

Back

Net salary refers to your paycheck after taxes and other deductions have been taken out.

Front

What is Medicare Tax?

Back

Medicare Tax is a federal tax that funds the Medicare program, which provides healthcare for individuals over the age of 65.

Front

What is a salary?

Back

A salary is a fixed regular payment, typically paid on a monthly or biweekly basis, regardless of the number of hours worked.

Front

What is an hourly wage?

Back

An hourly wage is a payment rate for each hour worked, meaning the employee is paid only for the hours they work.

Front

What is the difference between a salary and an hourly wage?

Back

A salary is paid no matter how many hours you work, whereas an hourly wage is paid only for the time worked.

Front

What is a paycheck?

Back

A paycheck is a document that an employer gives to an employee as payment for work done, usually detailing gross pay, deductions, and net pay.