Paycheck Math 1st Block

Front

What is gross pay?

Back

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

Front

What is net pay?

Back

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

Front

Which is larger: gross pay or net pay?

Back

Gross pay is larger than net pay.

Front

What does FICA stand for?

Back

FICA stands for the Federal Insurance Contributions Act, which includes Social Security and Medicare taxes.

Front

What is the purpose of Social Security?

Back

Social Security provides retirement income for the elderly and pays disability benefits.

Front

When budgeting, which figure should you use to predict spending money?

Back

You should use net pay to predict how much money you have to spend.

Front

What are the two main components of FICA tax?

Back

The two main components of FICA tax are Social Security and Medicare.

Front

If Sam's deductions total $112 and her net pay is $425, how do you calculate her gross pay?

Back

Gross pay = Net pay + Deductions; Gross pay = $425 + $112 = $537.

Front

What is a budget?

Back

A budget is a plan that outlines expected income and expenses over a specific period.

Front

What is a deduction?

Back

A deduction is an amount that is subtracted from gross pay to determine net pay, often for taxes, benefits, or other withholdings.