Caitlyn Lemasters

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

Letter

Gross Pay

Gross pay is the amount of money you make before

any deductions.

Definition in a Complete Sentence

Federal Withholding
Tax

Federal withholding tax is the tax taken out little by

little to pay off your taxes to the nation.

Social Security

Social security is the taxation program that you pay

into to support retired and disabled citizens.

Deductions

E,F,G,
H,I

Deductions are the taxes and other withholdings

taken out of your paycheck routinely.

Year-to-Date

Year to date is the total amount of deductions for

the year taken out of your paycheck.

State Withholding
Tax

Pay Period

State withholding tax is the tax taken out little by

little to pay off your taxes to the state in which you
reside.
Pay period is the time period you are getting paid
for.

Medical Insurance

Net Pay

10

Retirement

Medical insurance helps to cover expensive

insurance costs through a company in which you pay
into monthly.
Net pay is the actual amount of money you will be
receiving for that pay period.
Retirement is the program your employer sponsors
to save part of your paycheck for when you retire.