1. Paycheck Vocabulary

2. Guess what?
IT’S PAYDAY!!

3. In your envelope you should have…
$3,386.00
And 16 ones

5. 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

6. Medicare
Funds country’s health care for elderly
1.4% of pay

7. FIT Federal Income Tax Goes to Federal Government
Based on marital status and deductions you supply

8. SIT State Income Tax Same as federal only collected by the state
Washington has none

9. Local
If county or city has one
Example: Chicago

10. YTD
Year to Date
Total gross earnings starting January first

11. Gross
Total amount you make before taxes are taken out

12. Net Total amount left after all taxes and deductions have been paid
Amount your check is made out for
Also called “take home” pay

13. Pay Rate
Hourly wage listed on paycheck
How much you get paid per hour

14. Pay Period Work days you are paid for
Can be monthly, bi-monthly (2 week period), every 2 weeks, or weekly

15. Pay Period Example Rate: $ per hour $9 Units: # of hours worked 50
Gross pay: $450

16. Other Employee Benefits
Cost employer between 33% and 50% of pay
Paid vacation
Paid sick days
Health/dental/eyecare insurance
Life insurance
Disability insurance

17. Other Employee Benefits
Retirement benefits
Tax deferred retirement plan
Parental leave
Stock purchase plan
Employee assistance plan
Fitness program
Discounts

18. Social Security Major source of income for most senior citizens
Image here

19. Social Security More than a retirement plan
15% for survivor beneficiaries
15% for disability beneficiaries
70% for retirement beneficiaries