Understanding Paychecks and Taxes

Front

What is a check for salary or wages made out to an employee called?

Back

Paycheck

Front

What term describes the deposit of funds electronically into a bank account rather than through a physical paper check?

Back

Direct Deposit

Front

What is a piece of paper or digital record that shows the amount of money earned and the amount removed for deductions and taxes?

Back

Pay Stub

Front

What is the amount of money you receive in your paycheck after taxes and other deductions are taken out?

Back

Net Pay

Front

What provides benefits for retired workers and people with disabilities, and their dependents and spouses?

Back

Social Security

Front

What reduces how much income tax an employer deducts from an employee’s paycheck? Options: FICA Tax, Withholding Allowance, Payroll Deduction, Direct Deposit

Back

Withholding Allowance

Front

What is a person that requires financial support from you, like a child, called?

Back

Dependent

Front

What is the purpose of Retirement Contributions?

Back

To invest in an account for retirement savings

Front

What are Donations in the context of payroll?

Back

Money taken out each pay period as a charitable gift

Front

What does the term "Gross Income" refer to?

Back

100% of your wages or salary