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

Federal Withholding
Tax

Social Security

Deductions

Year-to-Date

Gross Pay is the total amount of money you get before

taxes or other deductions are subtracted from your
salary
Federal Withholding Tax is income tax withheld from
employees' wages and paid directly to the federal
authorities by the employer
Social Security is any government system that
provides monetary assistance to people with an
inadequate or no income
Deductions are any item or expenditure subtracted
from gross income to reduce the amount of income
subject to tax
Year-to-Date is the period beginning January 1st of the
current year up until today's date

State Withholding
Tax

Pay Period

Medical Insurance

Net Pay

State Withholding Tax is income tax withheld from

employees' wages and paid directly to the state
authorities by the employer
Pay Periods are the number of days for which a
regular, usually non-salaried employee gets paid
Medical Insurance is a federal health insurance
program, administered by the Social Security
Administration, that provides health care for the aged
Net Pay is the amount one receives after taxes and
deductions have been withheld during a pay period

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Retirement

Retirement is the act of ending your working or

professional career