Reading a Paystub

DIRECTIONS: Write the letter of the item on the paystub that matches its name in the list. Then, write your
OWN definition of each part of the paystub, using COMPLETE SENTENCES in your OWN words.








1. _B____ Gross Pay: The gross pay is the amount of money you earn during a pay period before the deductions.
2. _C___ Net Pay: The net pay is the amount of money you earn after deductions.
3. _D____ Deductions: Deductions are the amount of money taken away from your gross pay.
4. _A____ Pay Period: A pay period is the amount of time that an employees wage is calculated.
5. _G____ FICA: Under the FICA, 12.4% of your income must be paid into Social Security and 2.9% must be paid into
Medicare.
6. _J___ Year-to-Date: The year-to-date is the total amount of deductions a person gets from January 1
st
to the end of the
pay period.
7. _E___ Federal Withholding Tax: The federal withholding tax is the amount of money that the law requires to be taken
out of a persons wage to pay taxes.
8. _H___ Medical: Medical is the amount of money taken from a persons paycheck for medical benefits.
9. _F____ State Withholding Tax: The state withholding tax is the percentage of money taken from a persons paycheck
to help fund government agencies.
10. _I___ Retirement: Retirement is the amount of money per paycheck a person puts toward their retirement fund.