Understanding Net Pay
A worksheet for 6th graders to learn about net pay, gross pay, deductions, and calculating take-home earnings.
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Understanding Net Pay
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Read each question carefully and answer to the best of your ability. Show your work where necessary.
When you start working, your paycheck will show two important amounts: Gross Pay and Net Pay. Gross pay is the total amount of money you earn before any deductions (like taxes) are taken out. Net pay is the amount of money you actually take home after all deductions. Let's practice calculating net pay!
1. The total amount of money earned before any deductions is called .
2. The money you take home after deductions is known as .
3. Money taken out of your gross pay, such as taxes, are called .
4. If your gross pay is $500 and your deductions are $100, what is your net pay?
$600
$400
$500
$100
5. Which of the following is NOT a deduction?
Income Tax
Social Security
Health Insurance
Hourly Wage
6. Sarah earned $800 gross pay last week. Her deductions were $120 for taxes and $30 for health insurance. What was Sarah's net pay?
7. John's net pay for the month was $1,500. If his total deductions were $350, what was his gross pay?
8. Gross pay is always less than net pay.
True
False
9. Deductions are subtracted from gross pay to get net pay.
True
False
10. Emily earns $15 per hour and worked 40 hours last week. Her deductions were 15% of her gross pay. Calculate her net pay.