income + pay

• gross pay: earned income BEFORE required and voluntary deductions
• net pay: pay AFTER taxes and deductions are made (aka “Take Home Pay”)
• state income tax (MANDATORY): the percentage deducted from an individual’s paycheck to assist in funding government agencies within the state. the percentage of deduction depends upon the amount of gross income the employee has earned
• pay period: the length of time for which an employee’s wages are calculated usually weekly, bi-weekly, semi-monthly, and monthly
• weekly: paid 52 checks per year
• bi-weekly: paid 26 checks per year
• semi-monthly: paid twice a month, 24 paychecks a year
• monthly: paid once a month, 12 paychecks a year
• FICA: Federal Insurance Contributions Act - taxes paid by employers and employees. Consists of both, Medicare and Social Security taxes
• Medicare: the federal health insurance program for:

  • People who are 65 or older and certain younger people with disabilities