Paycheck Fact or Fiction? Round 2

Another term for take-home pay is gross pay. Fact or fiction?

• Fact

• Fiction

The pay for an hourly employee is calculated the same way that the pay for a salaried employee is calculated. Fact or fiction?

• Fact

• Fiction

If a worker’s pay stub shows a line item for FICA, it relates to Social Security and Medicare withholdings. Fact or fiction?

• Fact

• Fiction

All U.S. states withhold state income tax from workers’ paychecks. Fact or fiction?

• Fact

• Fiction

Federal income tax withholdings can reduce a person’s net pay. Fact or fiction?

• Fact

• Fiction

Health insurance premiums, union dues, and retirement plans like 401(k)s are all types of paycheck deductions that can decrease a worker’s net pay. Fact or fiction?

• Fact

• Fiction

If a worker’s base pay is $36,000 per year and paychecks are issued on a monthly basis, the gross monthly pay is $3,000. Fact or fiction?

• Fact

• Fiction

Only workers over the age of 65 must have Medicare taxes withheld from paychecks. Fact or fiction?

• Fact

• Fiction

A nonexempt worker earns an annual salary and does not receive overtime pay. Fact or fiction?

• Fact

• Fiction

Minimum wage earners tend to be younger in age and work part-time hours. Fact or fiction?

• Fact

• Fiction