Understanding Paychecks and Paystubs

What is disposable income?

• The total amount of money earned before taxes.

• The amount of money a worker makes per hour.

• The amount of money left over for spending after tax deductions.

• The total amount of money a worker is paid by their company per year.

What is an hourly wage?

• Money paid for time worked beyond a worker's regular schedule.

• The amount of money paid by an employer per hour worked.

• The amount of money deducted from a worker's paycheck.

• A worker's total annual income.

What is overtime?

• When a worker puts in time beyond their regularly scheduled hours.

• When a worker puts in hard work within their working day.

• When a worker has to leave their work site to complete a task.

• When a worker clocks out before the end of the work day.

The Fair Labor Standards Act requires that overtime pay:

• Must be less than 1.5 times the regular pay rate and is required for working over 40 hours a week.

• Cannot be less than 1.5 times the regular pay rate and is required for working over 40 hours a week.

• Must be less than 1.5 times the regular pay rate and is not required for working over 40 hours a week.

• Cannot be less than 1.5 times the regular pay rate and is not required for working over 40 hours a week.

What is the difference between a salary and an hourly pay rate?

• A salary is a fixed amount of money; hourly pay is determined by how many hours one works.

• A salary is based upon how many hours one works; hourly pay is a fixed amount of money.

• A salary is always better than an hourly rate of pay.

• There is no difference between salary and hourly pay rates.

Which is not a common pay period used by employers?

• Monthly

• Bi-Weekly

• Annually

• Weekly

What is gross pay?

• The amount of money a worker earns after deductions.

• The amount of money a worker earns for overtime.

• The amount of money a worker earns for cashing in vacation time.

• The amount of money a worker earns before deductions.

What is a deduction?

• The amount of money a worker receives per pay period.

• The amount of money subtracted from a worker's gross pay.

• The amount of money subtracted from a worker whose work is poor in quality.

• The amount of money subtracted fro ma worker who is continually logging overtime.

Which of the following is not a mandatory deduction?

• Federal and state taxes

• FICA (Social Security / Medicare)

• Healthcare

• Local taxes

Which of the following is not a voluntary deduction?

• Union dues

• Savings / Retirement Contributions

• Social Security / Medicare

• Healthcare