Understanding Your Pay Stub

What is the main difference between a paycheck and a pay stub?

• A pay stub includes deductions, a paycheck does not.

• A pay stub is given weekly, while a paycheck is monthly.

• A paycheck is digital, while a pay stub is physical.

• A paycheck is money you receive, a pay stub is a summary of it.

Why is it important to double-check personal information on your pay stub?

• To ensure accurate tax reporting.

• To update your address.

• To check your work schedule.

• To see your vacation days.

Why might you need to keep an eye on your credit if your pay stub is compromised?

• To track your spending.

• To monitor for identity theft.

• To apply for a loan.

• To check your credit score.

Why is it important to store paper pay stubs securely?

• To keep track of work hours.

• Because they are legal documents.

• To prevent identity theft.

• To use them for tax returns.

What does gross pay represent on your pay stub?

• The amount after taxes.

• Your yearly salary.

• The total earned before deductions.

• Net pay after benefits are added.

What is net pay?

• The total before any benefits are added.

• Only your taxable income.

• Your salary before taxes.

• The amount after all deductions.

What does the pay period on a pay stub indicate?

• The deadline for retirement contributions.

• The time you worked overtime.

• The range of dates you are being paid for.

• The date your taxes are due.

How often can pay periods vary among companies?

• Weekly, bi-weekly, or monthly.

• Every two months.

• Daily or hourly.

• Annually.

Which of the following is a type of deduction you might see on your pay stub?

• Entertainment costs

• Grocery expenses

• Internet bill

• Federal taxes

What benefit do pre-tax deductions for health insurance provide?

• Reduce taxable income.

• Eliminate the need for insurance.

• Increase your net pay.

• Cover all medical expenses.