Paycheck Vocabulary

Front

What is Federal Tax?

Back

Money that is subtracted from your paycheck and given to the federal government to help run the country.

Front

What is State Tax?

Back

Money that is subtracted from your paycheck and given to your state's government to help run the state.

Front

What is Social Security?

Back

Money that is subtracted from your paycheck to be saved and paid back to you when you retire; this is sometimes written as FICA on your paycheck.

Front

What is Overtime Pay?

Back

The amount of money you earn for working more than 40 hours each week.

Front

What is a Pay Stub?

Back

The part of a paycheck that provides information about the pay period, including the number of hours worked and the deductions taken out of the paycheck.

Front

What is Local Tax?

Back

Money that is subtracted from your paycheck and given to your local government to help run local services.

Front

What is Gross Pay?

Back

The total amount of money earned before any deductions are taken out.

Front

What is Net Pay?

Back

The amount of money you take home after all deductions have been made from your gross pay.

Front

What are Deductions?

Back

Amounts of money that are subtracted from your gross pay for taxes, insurance, and other benefits.

Front

What is FICA?

Back

Federal Insurance Contributions Act; it refers to the payroll tax that funds Social Security and Medicare.