Wages & Paychecks Study Guide

Front

What is a pay stub?

Back

A pay stub is a document provided by an employer that outlines an employee's earnings, deductions, and net pay for a specific pay period.

Front

How do you calculate a 20% tip on a bill?

Back

To calculate a 20% tip, multiply the total bill amount by 0.20. For example, for a bill of $76.89, the tip is $76.89 * 0.20 = $15.38.

Front

What is the formula to calculate annual salary from hourly wage?

Back

Annual Salary = Hourly Wage x Hours per Week x Weeks per Year. For example, if the hourly wage is $19.50 and the hours per week are 40, then Annual Salary = $19.50 * 40 * 52 = $40,560.

Front

What does net pay mean?

Back

Net pay is the amount of money an employee takes home after all deductions, such as taxes and benefits, have been subtracted from gross pay.

Front

What is gross pay?

Back

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

Front

How do you find the total earnings for a job with bonuses?

Back

Total Earnings = (Hourly Wage x Hours per Week x Weeks per Year) + Bonuses. For example, if the hourly wage is $18 and the bonus is $1,500 every 6 months, calculate the total earnings accordingly.

Front

What is overtime pay?

Back

Overtime pay is the compensation an employee receives for working more than the standard hours, typically calculated at a higher rate, often 1.5 times the regular hourly rate.

Front

How do you calculate federal income tax withheld?

Back

Federal income tax withheld is calculated based on the employee's earnings, filing status, and the number of allowances claimed on their W-4 form, using IRS tax tables.

Front

What is the significance of performance bonuses?

Back

Performance bonuses are additional compensation awarded to employees for meeting or exceeding specific performance goals, incentivizing productivity and efficiency.

Front

What is the difference between fixed and variable pay?

Back

Fixed pay is a consistent salary or hourly wage, while variable pay can fluctuate based on performance, sales, or other metrics.