Understanding Your Paycheck

What is a check for salary or wages made out to an employee called?

• Direct Deposit

• Paycheck

• Gross Pay

• Net Pay

What is a piece of paper or digital record that shows the amount of money earned and the amount removed for deductions and taxes?

• Paycheck

• Pay Stub

• Direct Deposit

• Gross Pay

What is the amount of money you receive in your paycheck after taxes and other deductions are taken out?

• Gross Pay

• Net Pay

• Direct Deposit

• Pay Stub

FICA taxes are

• U.S. federal payroll taxes imposed on both employees and employers to fund Social Security and Medicare

• U.S. federal payroll taxes imposed on employees only to fund Social Security and Medicare.

• U.S. federal payroll taxes imposed on both employees and employers to fund Social Security.

• U.S. federal payroll taxes imposed on employers only to fund Social Security and Medicare

An employee's pay stub shows a deduction for "401(k)". What does this deduction represent?

• Health insurance premium

• Retirement savings contribution

• Union dues

• Federal income tax

You can control how much or how little your employer withholds from your paycheck using the Form ____.

• W-4

• W-2

• WD-40

• W-1

What is the term for the total amount of money earned before any deductions are made?

• Gross Pay

• Net Pay

• Take-home Pay

• Disposable Income

Which document summarizes an employee's earnings and tax withholdings for the year?

• W-2 Form

• W-4 Form

• 1099 Form

• Pay Stub

What is the purpose of a W-4 form?

• To determine tax withholding

• To report annual earnings

• To apply for a job

• To claim unemployment benefits

What is the term for the money taken out of your paycheck for health insurance?

• Premium

• Deductible

• Co-pay

• Out-of-pocket