Understanding Your Paycheck
A Grade 12 math worksheet on understanding paycheck components, deductions, and calculations.
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Understanding Your Paycheck
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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. What is 'gross pay'?
The amount of money you take home after deductions.
Your total earnings before any deductions.
The amount paid to your retirement fund.
The employer's contribution to your benefits.
2. Which of the following is typically NOT a mandatory payroll deduction?
Federal Income Tax
Social Security Tax
Health Insurance Premium
Medicare Tax
3. The amount of money an employee receives after all deductions are subtracted from their gross pay is called .
4. FICA stands for Federal Insurance Contributions Act, which includes and taxes.
5. A W-4 form is used to inform your employer how much to withhold from your paycheck.
6. Explain the difference between pre-tax and post-tax deductions, and provide one example of each.
7. Why is it important to review your pay stub regularly?
8. Sarah earns an hourly wage of $25 and worked 80 hours in a pay period. Her deductions are as follows: Federal Income Tax (15%), State Income Tax (5%), Social Security (6.2%), Medicare (1.45%), and Health Insurance Premium ($150). Calculate her gross pay, total deductions, and net pay for the pay period.
Gross Pay Calculation:
Total Deductions Calculation:
Net Pay Calculation:
9. Your employer pays the entire amount of your Social Security and Medicare taxes.
True
False
10. A 401(k) contribution is an example of a post-tax deduction.
True
False