Reading a pay stub

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What is YTD Gross Pay?

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YTD Gross Pay (Year-To-Date Gross Pay) is the total amount of money earned by an employee before any deductions, from the beginning of the year to the current pay period.

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What is the average FICA - Social Security tax rate?

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The average FICA - Social Security tax rate is 6.2%.

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Define salary.

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A salary is a fixed regular amount of money paid to an employee, typically expressed on an annual basis, based on an agreement between the employer and employee.

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What is a pay period?

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A pay period is the duration of time for which an employee's wages are calculated and paid, typically weekly, bi-weekly, or monthly.

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What are mandatory deductions from a paycheck?

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Mandatory deductions are amounts that must be withheld from an employee's paycheck by law, including social security, Medicare, and federal income tax.

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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 (taxes, benefits, etc.) have been subtracted from the gross pay.

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What is gross pay?

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Gross pay is the total earnings of an employee before any deductions are made.

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What is the purpose of a pay stub?

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A pay stub provides a detailed breakdown of an employee's earnings, deductions, and net pay for a specific pay period.

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What is Medicare tax?

Back

Medicare tax is a federal tax that funds the Medicare program, which provides health insurance for individuals aged 65 and older, and is typically 1.45% of gross pay.

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What is the difference between hourly and salaried employees?

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Hourly employees are paid based on the number of hours worked, while salaried employees receive a fixed amount regardless of hours worked.