Reading a Pay Stub

Front

What is a pay stub?

Back

A pay stub is a document provided by an employer that outlines an employee's earnings and deductions for a specific pay period.

Front

What does 'gross pay' mean?

Back

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

Front

What are deductions on a pay stub?

Back

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

Front

What is Social Security Tax?

Back

Social Security Tax is a federal tax that funds the Social Security program, which provides benefits for retirees and disabled individuals.

Front

What is Medicare Tax?

Back

Medicare Tax is a federal tax that funds the Medicare program, which provides health insurance for individuals aged 65 and older.

Front

How do you calculate overtime pay?

Back

Overtime pay is calculated as 1.5 times the regular hourly rate for hours worked over 40 in a week.

Front

If Jose makes $10/hour for regular hours, what is his overtime rate?

Back

Jose's overtime rate is $15/hour, which is 1.5 times his regular rate.

Front

What does 'Current' mean on a pay stub?

Back

'Current' refers to the amounts earned or deducted during the current pay period.

Front

How do you find total deductions on a pay stub?

Back

Total deductions can be found by adding all the individual deductions listed on the pay stub.

Front

What is the formula to calculate gross pay for a week with overtime?

Back

Gross pay = (Regular hours x Regular rate) + (Overtime hours x Overtime rate).