Financial Math - Paycheck

Gross pay

the total amount of an employee's earnings before deductions are taken out

Net pay

Amount of income left after taxes and deductions have been taken out.

Deductions

amounts that are subtracted from your paycheck

Commission

An amount paid to an employee based on a percentage of the employee's sales

Optional Deductions

Money that an employee can elect to have deducted from his or her paycheck.

Required Deductions

money an employer is legally required to deduct from an employee's paycheck

Salaried

an employee paid a predetermined amount of money every pay period regardless of the number of hours worked

Hourly compensation

an employee is paid an exact amount of money for each hour worked

Minimum wage

a minimum price that an employer can pay a worker for an hour of labor

Annual raises

An increase in salary received once a year