Pay Check Vocabulary

Front

What are deductions in a paycheck?

Back

Deductions are amounts of money subtracted from an employee's gross pay for taxes, insurance, and other purposes.

Front

What is net pay?

Back

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

Front

What does gross pay refer to?

Back

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

Front

Define hourly wage.

Back

Hourly wage is the amount of money a worker earns for each hour of work.

Front

What is the purpose of payroll taxes?

Back

Payroll taxes are deductions from an employee's paycheck that fund government programs such as Social Security and Medicare.

Front

Explain the difference between gross pay and net pay.

Back

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

Front

What is a 401(k) contribution?

Back

A 401(k) contribution is a portion of an employee's paycheck that is set aside for retirement savings.

Front

What are benefits in the context of a paycheck?

Back

Benefits are non-wage compensations provided to employees, such as health insurance and retirement plans.

Front

What does it mean to be paid bi-weekly?

Back

Being paid bi-weekly means receiving a paycheck every two weeks.

Front

What is overtime pay?

Back

Overtime pay is additional compensation for hours worked beyond the standard workweek, typically at a higher rate.