Personal Finance - Your Paycheck

Pay Period

Length of time for which an employee gets paid

Time Card

Form that records how many hours an employee worked for one pay period

Weekly Pay Period

Employees get paid 52 times a year

Biweekly Pay Period

Employees get paid 26 times a year

Semimonthly Pay Period

Employees get paid 24 times a year

Monthly Pay Period

Employees get paid 12 times a year

Pay Stub

Form that details earnings, deductions, and net pay

Deductions

Amounts taken out of your gross earnings

Net Pay

Amount of earnings the employee receives after deductions

Gross Pay

Amount of earnings before deductions are taken out

Piecework

Method of getting paid when the employee is paid per amount produced

Commission

Method of getting paid when the employee is paid a percentage of their sales

Direct Deposit

Net pay was transferred into your bank account electronically by your employer on pay day.

Gross Earnings YTD

Amount of gross pay earned so far this year

Taxes YTD

Amount of specific tax deducted from all paychecks so far this year

Wages

Employee is paid by the hour

Overtime

Time worked beyond the regular hours of a work week.

Salary

An employee is paid a set amount - usually stated per year.

Income Taxes

Amounts that come out of your paycheck and are paid to the government; Taxes on your earnings.

401k

A retirement plan which can be deducted from your paycheck.

W-4 Form

The form that is filled out before beginning a new job, and helps the employer know how much Federal Income Tax to withhold.

Dependent

A person who you claim to support with your income

Required Deductions

Deductions that are mandatory to pay. Ex: Federal Income Tax, State Income Tax, Social Security, Medicare

Voluntary Deductions

Deductions that you choose to pay. Ex: Health Insurance, Life Insurance, Charitable Donations, Retirement Fund, or Union Membership.