Understanding Paystub Components and Deductions

The component of a paystub that provides the total amount earned before any deductions are made is _____

• Net Pay

• Gross Pay

• Deductions

• Taxes

• $2,800

• $3,200

• $4,000

• $1,200

Evaluate the benefits section of a paystub. If an employee has health insurance, dental insurance, and a retirement plan listed, _____ is typically a pre-tax deduction.

• Health Insurance

• Dental Insurance

• Retirement Plan

• All of the above

Compare the pay periods: An employee paid bi-weekly will receive _____ paychecks in a year.

• 12

• 24

• 26

• 52

Identify which of the following is not typically considered a deduction on a paystub: _____

• Federal Tax

• State Tax

• Overtime Pay

• Social Security

Analyze the deductions: If an employee's paystub shows federal tax as $300, state tax as $150, and social security as $200, the total tax deduction is _____

• $450

• $500

• $650

• $700

Net pay is always _____ than gross pay.

• True

• False

Interpret the following: If an employee's paystub lists a deduction for "FICA," this deduction represents _____

• Federal Income Contribution Act

• Federal Insurance Contributions Act

• Federal Investment Contributions Act

• Federal Internal Contributions Act

Compare different pay periods: An employee paid semi-monthly will receive _____ paychecks in a year.

• 12

• 24

• 26

• 52

_____ is typically included in the earnings section of a paystub.

• Health Insurance

• Federal Tax

• Regular Pay

• Retirement Plan