Questions and Answers
What does the term Pay Period refer to?
The dates you worked for which you are being paid.
What are Hours in relation to a pay stub?
How many hours you worked.
What does Rate mean in terms of pay?
How much money you are earning each hour.
What is Gross Pay?
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What are Wage deductions?
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What is Federal income tax?
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What does FICA stand for?
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What is Individual state income tax?
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What is the purpose of Disability deductions?
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What are Other deductions?
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What does Net pay refer to?
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What is Direct Deposit?
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What does Year-to-Date (YTD) mean?
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Study Notes
Pay Stub Terminology
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Pay Period: Refers to the specific timeframe for which you are compensated, encompassing the days worked during that duration.
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Hours: Indicates the total number of hours worked within the pay period, essential for calculating earnings.
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Rate: The hourly wage or salary amount earned, fundamental in determining total pay before deductions.
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Gross Pay: Represents the total earnings calculated before any deductions are applied, reflecting the cumulative compensation for the pay period.
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Wage Deductions: The total sum of money deducted from each paycheck, which includes taxes and other withholdings.
Tax and Benefit Deductions
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Federal Income Tax: The portion of pay withheld to fulfill federal taxation obligations, based on income levels and tax brackets.
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FICA: Refers to deductions that fund Social Security benefits, ensuring financial support upon retirement.
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Individual State Income Tax: State-level taxes taken from earnings, varying by state regulations and individual income.
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Disability: A specific deduction aimed at funding disability benefits, providing assistance in case of long-term injury or illness.
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Other Deductions: May include contributions to savings accounts, charitable donations, or other financial commitments.
Final Earnings
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Net Pay: Also known as "take-home pay," this amount remains after all deductions have been subtracted from gross pay, representing the actual income available for expenditure.
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Direct Deposit: A convenient method where employers transfer net pay directly into the employee's bank account, streamlining the payment process.
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Year-to-Date (YTD): Indicates the total earnings accumulated from the beginning of the calendar year up to the current pay period, useful for tracking overall income.
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Description
Explore essential terms related to pay stubs in this quiz on reading paycheck details. Understand key concepts like pay period, hours worked, and gross pay. Perfect for anyone looking to better manage their finances and understand their salary statements.
