Understanding Paychecks
This worksheet helps grade 10 students understand the components of a paycheck, including gross pay, deductions, and net pay.
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Topics
Understanding Paychecks
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Date:
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Read each question carefully and answer to the best of your ability. Show all your work for calculation questions.
1. The total amount of money earned before any deductions is called .
2. Money subtracted from your gross pay for taxes, insurance, or other benefits are known as .
3. The amount of money you actually take home after all deductions is your .
1. Which of the following is NOT typically a deduction from a paycheck?
Federal Income Tax
Social Security
Healthcare Premiums
Rent Payment
2. If your gross pay is $800 and your total deductions are $200, what is your net pay?
$600
$800
$1000
$200
1. Sarah earns an hourly wage of $15 and worked 40 hours last week. Her deductions for federal tax were $60, state tax was $30, and health insurance was $25. Calculate Sarah's gross pay and net pay.
Gross Pay:
Net Pay:
2. David's annual salary is $48,000. He is paid bi-weekly. Each pay period, $150 is deducted for federal tax, $75 for state tax, and $50 for retirement contributions. What is David's gross pay per pay period and his net pay per pay period?
Gross Pay per pay period:
Net Pay per pay period:
1. Gross pay is always less than net pay.
True
False
2. FICA includes Social Security and Medicare taxes.
True
False
1. Why is it important to understand the deductions on your paycheck?