Cash Course: What is a Paystub?

What is deducted from your gross pay to get your net pay?

• Hourly rate

• Overtime pay

• Deductions

• Bonuses

What are the three general categories of deductions?

• Federal, State, Local

• Vacation, Sick Leave, Personal Days

• Taxes, Retirement, Insurance

• Healthcare, Vision, Dental

What does the pay period indicate?

• The total amount of your deductions

• The time period you are being paid for

• The number of hours you worked

• The amount of taxes you owe

What is gross pay?

• The total hours you worked in a pay period

• The total amount you've earned before deductions

• Your take-home pay after deductions

• The amount of money you save for retirement

What taxes are paid to the federal government?

• Income tax, Social Security tax, Medicare tax

• State tax, Local tax, Sales tax

• Luxury tax, Estate tax, Gift tax

• Property tax, Excise tax, Tariff

What is a 401k?

• A healthcare plan

• A retirement savings account

• A federal tax

• A type of insurance plan

What should you do if you find errors on your pay stub?

• Ask for a raise

• Deduct them from your taxes

• Report them to your supervisor or payroll department

• Ignore them

How can contributions to certain retirement accounts affect your taxes?

• Increase your taxable income

• Have no effect on your taxes

• Reduce the amount of income tax you pay

• Result in higher state taxes

What is the benefit of an employer matching your retirement account contributions?

• It increases the amount saved for retirement

• It covers your healthcare costs

• It doubles the taxes you owe

• It reduces your gross pay

Why is it important to plan using your net pay instead of your gross pay?

• To increase your gross pay

• To avoid paying taxes

• To ensure you meet your budget and personal goals

• To reduce the amount of work you do