Gross vs Net Income AND Income vs Payroll Tax

Front

What is Payroll Tax?

Back

The total tax an employer withholds to pay to the government.

Front

What is a deduction?

Back

Money taken out of your income.

Tags

CCSS.RF.3.3B

CCSS.RF.3.3C

CCSS.RF.3.3D

CCSS.RF.4.3A

CCSS.RF.5.3A

Front

What is Net Income?

Back

The amount of money you receive after deductions are subtracted from your gross income.

Tags

CCSS.7.RP.A.3

Front

What type of tax do you pay once a year on any money you've earned?

Back

Income Tax.

Front

What does Net Income represent?

Back

The amount of money you have after taxes are taken out.

Tags

CCSS.7.RP.A.3

Front

What is Gross Income?

Back

The total amount of money you earn before any deductions.

Front

What is Income Tax?

Back

A tax you pay on your earnings, usually calculated annually.

Front

What is the difference between Gross Income and Net Income?

Back

Gross Income is the total earnings before deductions; Net Income is what you take home after deductions.

Front

What is an example of a deduction?

Back

Taxes, health insurance, or retirement contributions.

Tags

CCSS.6.RP.A.3B

Front

What is the purpose of Payroll Tax?

Back

To fund social security and Medicare programs.