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    Chapter 10 Lesson 2 Ramsey Classroom

    Uploaded by

    cboggiano25
    Chapter 10 Lesson 2 Ramsey Classroom

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Chapter 10 Lesson 2 Ramsey Classroom

    Uploaded by

    cboggiano25
    372 views4 pages
    Chapter 10 Lesson 2 Ramsey Classroom

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    © © All Rights Reserved

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    PDF, TXT or read online from Scribd

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    Chapter 10 Lesson 2 Ramsey Classroom

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    372 views4 pages

    Chapter 10 Lesson 2 Ramsey Classroom

    Uploaded by

    cboggiano25
    Chapter 10 Lesson 2 Ramsey Classroom

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    You are on page 1of 4

    Reading a Pay Stub

    CHAPTER 10, LESSON 2

    NAME DATE

    DIRECTIONS
    Review the key terms below. Then, use the information on the Sample Pay Stub to answer the questions that
    follow. The sample employee is paid semi-monthly.

    Key Terms
    • Pay Period: set length of time over which employee time is recorded and paid
    » Weekly (every week; 52 pay periods per year)
    » Biweekly (every two weeks; 26 pay periods per year)
    » Semi-monthly (twice per month; 24 pay periods per year)
    » Monthly (once a month; 12 pay periods per year)
    • Gross Pay: a person’s total earnings before payroll taxes and other deductions are
    taken out
    • Net Pay: a person’s earnings after payroll taxes and other deductions are taken out
    • Payroll Deduction: the amount subtracted from gross pay, which results in your
    net pay
    • Pension: a sum of money paid regularly as a retirement benefit
    • 401(k): a tax-deferred retirement savings plan offered by a company to its employees
    who contribute money from their gross pay
    • FICA (Federal Insurance Contributions Act): a payroll tax used to fund Social Security
    and Medicare

    FO U NDATI O NS IN PERSONA L FINA NCE PAGE 1 O F 4


    Sample Pay Stub
    EXAMPLE COMPANY, INC. JANE DOE
    555 MAIN STREET EMPLOYEE ID: 000004
    ANYCITY, AR 12345 DEPARTMENT: 000200
    DD RECEIPT: 123456789

    Pay Period 09/1/2021 - 09/15/2021 FITWH Filing Status: S Exemptions: 1


    Pay Date 10/01/2021 TN

    Earnings RATE HOUR/UNIT CURRENT YTD HOUR/UNIT YTD


    Holiday 15.00 8.00 120.00
    Vacation 15.00 8.00 120.00
    Regular 15.00 64.00 960.00
    Total $1,200.00 $17,622.50

    Deductions CURRENT YTD Taxes CURRENT YTD


    HLTH 43.75 612.50 FITWH 157.39 2396.21
    EXMPLCO 401K 48.00 704.90 MED 14.67 220.05
    Total $91.75 $1,317.40 SOC 62.31 934.35
    AR 40.06 599.12
    AC 23.13 340.27
    Total $297.56 $4,490.00

    Net Pay XXX4444 $810.69

    THIS IS NOT A CHECK. THIS DOCUMENT IS TO BE USED FOR INFORMATIONAL PURPOSES ONLY.

    EXAMPLE COMPANY, INC.


    555 MAIN STREET
    ANYCITY, AR 12345 Direct Deposit # 123456789
    Date 10/01/2021

    Pay this Amount

    ** N O N - N E G O T I A B L E ** D I R E C T D E P O S I T R E C E I P T ** VOID ** VOID **

    DIRECT DEPOSIT $810.69


    000000 DD TO ACCOUNT # XXX4444
    Pay to the
    BANK # XXXXX1111
    Order of JANE DOE
    123 LAMPO DRIVE
    ANYCITY, AR 12345 NON-NEGOTIABLE

    FO U NDATI O NS IN PERSONA L FINA NCE PAGE 2 O F 4


    Reading a Pay Stub
    CHAPTER 10, LESSON 2

    1. What is the employee’s gross pay?


    $1,200

    2. How much local tax is deducted from the paycheck?


    $23.13

    3. How much state tax is deducted from the paycheck?


    $40.06

    4. How much federal tax is deducted from the paycheck?


    $157.39

    5. How much did the employee contribute to FICA?


    $76.98

    6. How much did the employee contribute to Medicare?


    $14.67

    7. How much did the employee pay for other (nontax) deductions?
    $91.75

    8. What was the purpose of the other deductions?


    retirement

    9. What percentage of the employee’s income is set aside for retirement?


    4%

    FO U NDATI O NS IN PERSONA L FINA NCE PAGE 3 O F 4


    Reading a Pay Stub
    CHAPTER 10, LESSON 2

    10. What is the employee’s net pay?


    $810.69

    11. What percent of the employee’s paycheck is deducted for taxes and other expenses?
    2.97%

    12. How many hours did the employee work during this pay period? How much is the
    employee paid per hour?
    Worked 64 hours + 16 hours for holiday and vacation at $15 per hour

    13. How much does this employee pay monthly for health insurance?
    $87.50

    FO U NDATI O NS IN PERSONA L FINA NCE PAGE 4 O F 4

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