How to Read a Pay Stub

What is the difference between gross pay and net pay?

• Net pay is before taxes and deductions are subtracted; Gross pay is your take-home pay.

• There is no difference between gross and net pay.

• Gross pay is before taxes and deductions are subtracted; Net pay is your take-home pay.

What are Pre-Tax Deductions and Contributions?

• Contributions taken out of your paycheck AFTER taxes are calculated on your income

• Contributions taken out of your paycheck BEFORE taxes are calculated on your income

What are two examples of Employer Contributions?

• Health Insurance & 401k

• 401k & Roth IRA

• Federal & State Taxes

• Traditional & Roth IRA