Understanding Paychecks and Taxes

What is a check for salary or wages made out to an employee called?

• Direct Deposit

• Paycheck

• Gross Pay

• Net Pay

What term describes the deposit of funds electronically into a bank account rather than through a physical paper check?

• Paycheck

• Gross Pay

• Direct Deposit

• Net Pay

What is a piece of paper or digital record that shows the amount of money earned and the amount removed for deductions and taxes?

• Paycheck

• Pay Stub

• Direct Deposit

• Gross Pay

What is the amount of money you receive in your paycheck after taxes and other deductions are taken out?

• Gross Pay

• Net Pay

• Direct Deposit

• Pay Stub

What provides benefits for retired workers and people with disabilities, and their dependents and spouses?

• Medicare

• Social Security

• Medicaid

• Health Insurance Marketplace

What reduces how much income tax an employer deducts from an employee’s paycheck?

• FICA Tax

• Withholding Allowance

• Payroll Deduction

• Direct Deposit

What is a person that requires financial support from you, like a child, called?

• Exemption

• Dependent

• Beneficiary

• Spouse

What is the purpose of Retirement Contributions?

• To pay for health insurance

• To invest in an account for retirement savings

• To buy company stock

• To make charitable donations

What are Donations in the context of payroll?

• Money paid for health insurance

• Money taken out each pay period as a charitable gift

• Money invested in retirement

• Money paid to a union

What does the term "Gross Income" refer to?

• 100% of your wages or salary

• Money after taxes

• Money after deductions

• Money paid to a union