1. UNDERSTANDING YOUR PAYCHECKBY
ELLEN JOHNSON

2. WHAT ARE WAGES?
WAGES ARE THE AMOUNT OF MONEY YOU EARN FOR THE WORK YOU PERFORM

3. GROSS PAY
HOURS WORKED TIMES THE AMOUNT OF MONEY YOU EARN PER HOUR

4. EXAMPLE
YOU WORK 20 HOURS AND EARN $7.00 AN HOUR (20 X $7.00 = $140.00)
YOUR GROSS PAY IS $140.00
WHAT WILL YOUR GROSS PAY BE?

5. NET PAY
YOUR PAY AFTER DEDUCTIONS

6. DEDUCTIONS FEDERAL TAXES STATE TAXES FICA BENEFITS HEALTH INSURANCE
RETIREMENT

7. FEDERAL TAXES
AMOUNT WITHHELD DEPENDS ON HOW MUCH YOU EARN AND THE INFORMATION ON YOUR W4 FORM

8. STATE TAXES MONEY WITHHELD FOR THINGS LIKE SCHOOLS ROADS
SOCIAL SERVICES

9. FICA
FEDERAL INSURANCE CONTRIBUTION ACT – TAXES FOR RETIREMENT AND TO CARE FOR THE ELDERLY
REMEMBER, SOMEDAY YOU WILL BE AN ELDERLY PERSON

10. MEDICAL INSURANCE
MONEY DEDUCTED TO PAY FOR WHEN YOU ARE SICK

11. RETIREMENT
MONEY WITHHELD FOR YOUR RETIREMENT (WHEN YOU NO LONGER HAVE TO WORK UNLESS YOU WANT TO)

12. PUTTING IT ALL TOGETHER
UNDERSTAND HOW MUCH MONEY YOUR EARN AN HOUR
UNDERSTAND WHAT YOUR DEDUCTIONS ARE

13. PUTTING IT ALL TOGETHER CONTINUED
UNDERSTAND HOW TO CALCULATE YOUR DEDUCTIONS
UNDERSTAND HOW TO CALCULATE YOUR GROSS PAY

14. REMEMBER…
GROSS PAY – DEDUCTIONS
= NET PAY

15. IS THIS IMPORTANT?
YES!! YOU NEED TO REVIEW YOUR PAYCHECK TO KNOW IF YOU BEING PAID CORRECTLY AND IF THE RIGHT AMOUNT OF DEDUCTIONS ARE BEING WITHHELD

16. PRACTICE REVIEW THE PAY STUB WORKSHEET CALCULATE GROSS PAY
CALCULATE DEDUCTIONS
CALCULATE NET PAY
UNDERSTAND VOCABULARY