Understanding Paychecks and Paystubs

Front

What is disposable income?

Back

The amount of money left over for spending after tax deductions.

Front

What is an hourly wage?

Back

The amount of money paid by an employer per hour worked.

Front

What is overtime?

Back

When a worker puts in time beyond their regularly scheduled hours.

Front

What is the difference between a salary and an hourly pay rate?

Back

A salary is a fixed amount of money; hourly pay is determined by how many hours one works.

Front

Which is not a common pay period used by employers? Monthly, Bi-Weekly, Annually, Weekly

Back

Annually

Front

What is gross pay?

Back

The amount of money a worker earns before deductions.

Front

What is a deduction?

Back

The amount of money subtracted from a worker's gross pay.

Front

Which of the following is not a mandatory tax deduction?
Federal and state taxes,
FICA (Social Security / Medicare),
Healthcare,
Local taxes

Back

Healthcare

Front

Which of the following is not a voluntary deduction?
Union dues,
Savings / Retirement Contributions,
Social Security / Medicare,
Healthcare

Back

Social Security / Medicare

Front

What does the phrase Net Pay refer to?

Back

The amount of money left over after deductions.