Paychek part 1

A direct deposit occurs when an employer electronically transfers the worker’s pay into the worker’s designated bank account on payday; the worker does not receive a paper paycheck.

• Fact

• Fiction

From each paycheck, 6.2% of a worker’s gross pay is withheld for Social Security (retirement and disability benefits) and 1.45% is withheld for Medicare (health care for those over 65).

• Fact

• Fiction

If an employee earns $10 per hour and works 40 hours, his or her net pay is $400

• Fact

• Fiction

A worker submits a W-4 form to adjust the amount of federal tax withheld from his or her paycheck. This is one way to help ensure the correct amount of federal tax is paid

• Fact

• Fiction

Base pay is a worker’s normal hourly or annual wage plus overtime pay and bonuses.

• Fact

• Fiction

A pay stub is a document that many employers provide to workers each pay period. It typically lists the worker’s current and year-to-date gross pay, taxes, deductions, net pay, and hours.

• Fact

• Fiction

All U.S. employers must issue paychecks to workers each week

• Fact

• Fiction

If a worker quits a job before payday, he or she does not receive a final paycheck.

• Fact

• Fiction

The U.S. Department of Labor enforces minimum wage, overtime, and other job laws

• Fact

• Fiction

If state and federal minimum wages differ, the worker is paid the lower of the two

• Fact

• Fiction