Paycheck Vocabulary
November 5, 2015 Entry task: Write down as many money saving strategies that you can think of (list at least five) Target: Identify paycheck terminology and where your money goes.
Jobs! Have you ever had a job before? If so, how did you get paid?
Tip of the Day! Place a value on money. It doesn’t buy happiness, but it can certainly make you comfortable. Just understand what it’s worth.
Guess what? IT’S PAYDAY!! Well not really.
In your envelope you should have… $3,386.00
FICA Federal Insurance Contribution Act Employees contribute 6.2% of wages to Social Security Fund. You receive monthly social security checks based on your contribution when you reach retirement age
Social Security
Medicare Funds country’s health care for elderly 1.4% of pay
FIT Federal Income Tax Goes to Federal Government Based on marital status and deductions you supply
SIT State Income Tax Same as federal only collected by the state Washington has none
Local If county or city has one Example: Chicago
YTD Year to Date Total gross earnings starting January first
Gross Total amount you make before taxes are taken out
Net Total amount left after all taxes and deductions have been paid Amount your check is made out for Also called “take home” pay
Pay Rate Hourly wage listed on paycheck How much you get paid per hour
Pay Period Work days you are paid for Can be monthly, bi-monthly (2 week period), every 2 weeks, or weekly
Pay Period Example Rate: $ per hour $9 Units: # of hours worked 50 Gross pay: $450
Other Employee Benefits Cost employer between 33% and 50% of pay Paid vacation Paid sick days Health/dental/eyecare insurance Life insurance Disability insurance
Other Employee Benefits Retirement benefits Tax deferred retirement plan Parental leave Stock purchase plan Fitness program Discounts
Social Security Major source of income for most senior citizens Image here
Social Security More than a retirement plan 15% for survivor beneficiaries 15% for disability beneficiaries 70% for retirement beneficiaries