There are two main parts to understanding a paycheck - earnings, which show the amount originally earned, and deductions for taxes, FICA, and other expenses that provide infrastructure. Deductions take some of the gross pay, leaving the actual net pay amount an employee takes home each period lower than the total earned. Understanding the difference between gross and net pay is key to comprehending each paycheck.
There are two main parts to understanding a paycheck - earnings, which show the amount originally earned, and deductions for taxes, FICA, and other expenses that provide infrastructure. Deductions take some of the gross pay, leaving the actual net pay amount an employee takes home each period lower than the total earned. Understanding the difference between gross and net pay is key to comprehending each paycheck.
There are two main parts to understanding a paycheck - earnings, which show the amount originally earned, and deductions for taxes, FICA, and other expenses that provide infrastructure. Deductions take some of the gross pay, leaving the actual net pay amount an employee takes home each period lower than the total earned. Understanding the difference between gross and net pay is key to comprehending each paycheck.
Those parts are earnings, and deductions It is easy to understand your paycheck The paycheck shows what you have originally earned throughout you working Deductions are the money taken away by taxes and other federal bills The deductions are take care of roads, school, etc. FICA are also in your paycheck You have to pay attention to the money you actually take home Net pay and gross pay are two different things You wont get all of your money from your paycheck