Paycheck Math 2nd Block

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What is gross pay?

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Gross pay is the total amount of money earned by an employee before any deductions such as taxes and benefits.

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What is net pay?

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Net pay is the amount of money an employee takes home after all deductions have been made from gross pay.

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What does FICA stand for?

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FICA stands for the Federal Insurance Contributions Act, which is a U.S. law that mandates a payroll tax to fund Social Security and Medicare.

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What is the Social Security tax rate?

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The Social Security tax rate is 6.2% of gross pay.

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How do you calculate Social Security tax?

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

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What is the purpose of the federal income tax?

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The federal income tax is used to fund government services and programs, including education, defense, and infrastructure.

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What is the role of the employer in FICA tax?

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Both the employee and employer are responsible for paying FICA tax, with each contributing an equal amount.

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What does SSN stand for?

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SSN stands for Social Security Number, which is a unique identifier assigned to individuals for tracking earnings and benefits.

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What is the difference between gross pay and net pay?

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Gross pay is the total earnings before deductions, while net pay is the amount received after deductions.

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What are payroll deductions?

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Payroll deductions are amounts withheld from an employee's gross pay for taxes, benefits, and other contributions.