Personal Finance

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What is net income?

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Net income is the amount of money a person takes home after all deductions, such as taxes and other withholdings, have been subtracted from their gross income.

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What is gross income?

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Gross income is the total amount of money earned before any deductions, such as taxes or insurance, are taken out.

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What are deductions?

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Deductions are amounts that are subtracted from a person's gross income, which can include taxes, insurance, and retirement contributions.

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What is a paycheck?

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A paycheck is a document that an employer gives to an employee as payment for work done, which includes details about gross pay, deductions, and net pay.

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What is payroll tax?

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Payroll tax is a tax that employers withhold from employees' wages to fund social security and Medicare.

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What is income tax?

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Income tax is a tax imposed by the federal government on individuals' earnings, which is typically due by April 15th each year.

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How do you calculate total monthly net income if paid bi-weekly?

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To calculate total monthly net income, multiply the net income per paycheck by 2 (for two paychecks) and then by 2 (for two weeks in a month), resulting in a total of 4 paychecks per month.

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What is social security?

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Social security is a government program that provides financial assistance to individuals who are retired, disabled, or survivors of deceased workers.

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What is the purpose of taxes?

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Taxes are used by the government to fund public services and programs, such as education, healthcare, and infrastructure.

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What is the difference between sales tax and income tax?

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Sales tax is a tax on the sale of goods and services, while income tax is a tax on an individual's earnings.