Understanding Your Paycheck
A worksheet to help 10th-grade students understand the components of a paycheck stub, including gross pay, deductions, and net pay.
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Understanding Your Paycheck
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Read the provided paycheck stub example carefully and answer the questions that follow. This exercise will help you understand the various components of your earnings and deductions.
1. What is 'Gross Pay' on a paycheck stub?
The amount of money you take home after deductions.
Your total earnings before any deductions.
The amount of taxes withheld from your pay.
Your hourly wage multiplied by the number of days worked.
2. Which of the following is typically a mandatory deduction from your paycheck?
401(k) contributions
Health insurance premiums
Federal income tax
Union dues
3. The amount of money an employee receives after all deductions are subtracted from their gross pay is called .
4. FICA stands for the Federal Contributions Act, which funds Social Security and Medicare.
5. Explain the difference between 'Year-to-Date' (YTD) and 'Current' figures on a paycheck stub.
6. A higher number of allowances claimed on a W-4 form will result in more federal income tax being withheld from each paycheck.
True
False