Understanding Deductions and Gross Pay

What is gross pay?

• The amount of money you take home after all deductions.

• The total amount of money earned before any deductions.

• The amount of money you pay in taxes.

• The amount of money you save each month.

Which of the following is a type of deduction from your paycheck?

• Gross pay

• Net pay

• Health insurance

• Overtime pay

• $800

• $1000

• $200

• $1200

Which of the following is NOT a deduction from your paycheck?

• Federal taxes

• State taxes

• Savings account deposit

• Social Security

How do deductions impact your net income?

• They increase your net income.

• They decrease your net income.

• They have no effect on your net income.

• They double your net income.