Paycheck

Front

What is gross pay?

Back

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

Front

How do you calculate Social Security tax?

Back

To calculate Social Security tax, multiply the gross pay by the Social Security tax rate (6.2%).

Front

What does YTD stand for?

Back

YTD stands for Year to Date, which refers to the period from the beginning of the year to the current date.

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

How do you calculate net pay?

Back

Net pay is calculated by subtracting total deductions from gross pay.

Front

What are deductions?

Back

Deductions are amounts subtracted from an employee's gross pay, such as taxes, insurance, and retirement contributions.

Front

If an employee earns $13.25/hour and works 40 hours a week, what is their gross pay for that week?

Back

The gross pay for that week would be $530 (calculated as $13.25 x 40 hours).

Front

What is the formula to find the total deductions?

Back

Total deductions can be found by adding all individual deductions together.

Front

If Ruth's gross pay is $530 and her deductions total $90.72, what is her net pay?

Back

Ruth's net pay would be $439.28 (calculated as $530 - $90.72).

Front

Are deductions added or subtracted from income?

Back

Deductions are subtracted from income.