Finance - Paychecks, Deductions, and Taxes

Pay stub

A detailed statement that breaks down your expenses.

Paycheck

The actual money you receive.

Pay date

The specific day you receive your paycheck.

Pay period

The timeframe in which the employee earns wages (1-2 weeks).

Gross pay

The total amount you made before any deductions.

Net pay

The total amount you made after all deductions.

Statutory deductions

A deduction that has to legally come out of your paycheck.

Voluntary deduction

Includes insurance, other voluntary expenses.

Employee benefits

Something other than your salary that your employer offers.

Which forms of income are taxed?

All

Which levels of government require taxes?

Federal, state, local

Types of taxes

Taxes on what you earn, buy and own.