Reading a Paystub

DIRECTIONS: Determine what letter is associated with each of the following items on a
paystub. Then, write your OWN definition of each part of the paystub, using COMPLETE
SENTENCES in your OWN words.

Item

Lett
er

Definition in a Complete Sentence

Gross Pay

Gross pay is the amount of pay before deductions are

applied to it.

Federal Withholding
Tax

Federal withholding tax is the money withheld from a

paycheck and given to the federal government.

Social Security

Social Security is the federal retirement program that

financially helps the elderly, sick, or disabled.

Deductions

Year-to-Date

Deductions are the amount of money subtracted from

a paycheck for taxes, medical benefits, and/or
retirement.
Year-to-Date is the total amount of deductions per
year.

State Withholding
Tax

State withholding tax is the money withheld from a

paycheck and given to the state government.

Pay Period

A pay period is the period of time that you are being

paid for.

Medical Insurance

Medical insurance is insurance that can partially pay

for medical or surgical bills.

Net Pay

Net pay is the amount of pay after deductions are

applied to it; the amount of money you receive.

10

Retirement

Retirement is the amount of money taken out of a

paycheck in order to pay for retirement. A person and
their employer both pay for it.