1.13.1.G1
Family Economics & Financial Education
Paychecks and Tax Forms
Take Charge of your Finances
© Family Economics & Financial Education – Revised March 2008 – Paychecks and Taxes Unit – Understanding Your Paycheck – Slide 1
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
1.13.1.G1
Double the Salary
An employee starting a new job has the option to choose how he is paid
for the first twenty days of work. He works five days a week, for four
full weeks. Make the best choice for the new employee after comparing
the two options.
Payment Option 1:
For the first twenty days of
work, the new employee will be
paid $500 a day.
Payment Option 2:
The pay will be $0.01 for the first day.
Each day the pay will double. So, it will
be $0.02 the second day, $0.04 the third
day, $0.08 the fourth day, etc. By the
end of twenty days, how much money
will the employee have made?
(Planet Paycheck unit)
© Family Economics & Financial Education – Revised March 2008 – Paychecks and Taxes Unit – Understanding Your Paycheck – Slide 2
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
1.13.1.G1
Double the Salary
Payment Option 1:
Payment Option 2:
$500.00 a day * 20 days = $10,000 Day 1
$ 0.01 Day 11
10.24
Day 2
.02 Day 12
20.48
Day 3
.04 Day 13
40.96
Day 4
.08 Day 14
81.92
Day 5
.16 Day 15
163.84
Day 6
.32 Day 16
327.68
Day 7
.64 Day 17
655.36
Day 8
1.28 Day 18
1310.72
Day 9
2.56 Day 19
2621.44
Day 10
5.12 Day 20
5242.88
(Planet Paycheck unit)
Total:
$10,485.75
© Family Economics & Financial Education – Revised March 2008 – Paychecks and Taxes Unit – Understanding Your Paycheck – Slide 3
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
1.13.1.G1
Solution
Payment Option 1:
$500.00 a day * 20 days = $10,000.00
Payment Option 2:
This is a better choice for the new employee as
he will be making $10,485.75
This is $485.75 more than if he would have
chosen Payment Option 1
(Planet Paycheck unit)
© Family Economics & Financial Education – Revised March 2008 – Paychecks and Taxes Unit – Understanding Your Paycheck – Slide 4
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
1.13.1.G1
First Job!
• Miss Patty Paycheck has just received her first paycheck
from her new job!
– But, the paycheck amount seems a little lower than she had
figured. How could that be?
• Taxes – Required charges of citizens by local, state, and
federal governments
– Taxes are deducted from all employees paychecks
– Used to provide public goods and services
• Roads, police, schools, governmental agencies, fire and
emergency services, military
© Family Economics & Financial Education – Revised March 2008 – Paychecks and Taxes Unit – Understanding Your Paycheck – Slide 5
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
(Planet Paycheck unit)
1.13.1.G1
Where Does My Money Go?
• Almost 31% of an individual’s paycheck is
deducted
– Taxes are the largest expense most individuals will
have
– Therefore, it is important to understand the systematic
deductions
• U.S. tax system operates on an ongoing payment
system
– Taxes are immediately paid on income earned
© Family Economics & Financial Education – Revised March 2008 – Paychecks and Taxes Unit – Understanding Your Paycheck – Slide 6
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
1.13.1.G1
Paying Employees
Three methods employers may use to pay employees:
1. Paycheck – payment given with a paper check with a
paycheck stub attached
•
•
•
Most common method
Employee responsible for handling the paycheck
Immediately see payroll stub and deductions
© Family Economics & Financial Education – Revised March 2008 – Paychecks and Taxes Unit – Understanding Your Paycheck – Slide 7
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
1.13.1.G1
Paying Employees continued
2. Direct Deposit - employers directly deposit
employee’s paycheck into the authorized employee’s
depository institution account
•
•
•
Employee receives the paycheck stub detailing the paycheck
deductions
Most secure because there is no direct handling of the check
Employee knows exactly when paycheck will be deposited
and available
© Family Economics & Financial Education – Revised March 2008 – Paychecks and Taxes Unit – Understanding Your Paycheck – Slide 8
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
1.13.1.G1
Paying Employees continued
3. Payroll Card - payment electronically loaded
onto a plastic card
•
Funds are directly deposited by an employer into an
account at a depository institution that is linked to the
payroll card
– Parties involved:
» Employer
» Employee
» Depository institution
•
Use the payroll card for ATM withdrawals or to make
purchases
© Family Economics & Financial Education – Revised March 2008 – Paychecks and Taxes Unit – Understanding Your Paycheck – Slide 9
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
1.13.1.G1
Payroll Card
• There are numerous fees associated with payroll cards
– Number of fees depends upon the depository institution
– Examples:
•
•
•
•
•
•
•
Monthly or annual fee
ATM fee
Inactivity fee
Fee after a specific number of transactions have been used
Replacement fee if the card is lost, stolen, or destroyed
Load fee (when funds are placed on the card account)
Point of sale (POS) fee for using the card at a POS terminal, or an
electronic payment processor
© Family Economics & Financial Education – Revised March 2008 – Paychecks and Taxes Unit – Understanding Your Paycheck – Slide 10
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
1.13.1.G1
Benefits of Using Payroll Cards
• Employers
– Lower internal costs
• Costs associated with
producing, handling, and
distributing pay checks is
eliminated
• Depository Institutions
– Profit from the fees charged to
employees, employers, and
merchants
• Employees
– Safer than carrying large amounts of cash
– Unbanked employees do not have to pay
check cashing fees
• Americans roughly spend $8 billion
annually in check cashing fees
– Can access electronic monthly statement
of transactions
– Can receive a second card
• Give allowances to children
• Send money internationally
– Easily make online purchases
© Family Economics & Financial Education – Revised March 2008 – Paychecks and Taxes Unit – Understanding Your Paycheck – Slide 11
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
1.13.1.G1
Consumer Protection with Payroll Cards
• Regulation E – Electronic Fund Transfer Act
– Protects payroll card holder from fraudulent charges on
lost or stolen cards
• Card holder is only liable for $50 if a lost or stolen card is
reported within 48 hours
– Over four million paychecks are stolen annually with no
protection to employees
– Regulation E provides exceptional safety and protection
for payroll card holders
© Family Economics & Financial Education – Revised March 2008 – Paychecks and Taxes Unit – Understanding Your Paycheck – Slide 12
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
1.13.1.G1
Taxes
• Taxes – Compulsory charges imposed on citizens
by local, state, and federal governments.
– Used to provide public goods and services.
– Largest amount of taxes a person pays is on his/her
income.
• Internal Revenue Service (IRS) – Collects federal
taxes, issues regulations, and enforces tax laws
written by the United States Congress.
© Family Economics & Financial Education – Revised March 2008 – Paychecks and Taxes Unit – Understanding Your Paycheck – Slide 13
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
1.13.1.G1
Starting a New Job
To receive a paycheck, an employee must:
– Complete a Form W-4
• Employee’s Withholding Allowance Certificate
– Complete a Form I-9
• Employment Eligibility Verification
© Family Economics & Financial Education – Revised March 2008 – Paychecks and Taxes Unit – Understanding Your Paycheck – Slide 14
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
1.13.1.G1
Form W-4
Employee’s Withholding Allowance Certificate
– Determines the percentage of gross pay which will be
withheld for taxes
• Allowances
– Used to determine the amount of federal taxes withheld
from the paycheck
– A person may claim a personal allowance if no one else
claims the person as a dependent
• Dependent – a person who relies on the taxpayer for financial
support
© Family Economics & Financial Education – Revised March 2008 – Paychecks and Taxes Unit – Understanding Your Paycheck – Slide 15
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
1.13.1.G1
Steps to Completing a
Form W-4
• Print or type legal name on Line 1 and home address
directly below the name
• Write Social Security number on Line 2
• On Line 3, check the appropriate box to indicate marital
status
• Enter a zero on Line 5 if not claiming any allowances
• Sign name and date the form before giving it to the
employer
• Keep a copy for personal records
© Family Economics & Financial Education – Revised March 2008 – Paychecks and Taxes Unit – Understanding Your Paycheck – Slide 16
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
1.13.1.G1
Form I-9
Employment Eligibility Verification Form
• Used to verify the eligibility of individuals to avoid
hiring undocumented workers or others who are
not eligible to work in the United States
• Must provide documentation which establishes
identity and employment eligibility
– Examples include driver’s license, passport, Social
Security card, and birth certificate
© Family Economics & Financial Education – Revised March 2008 – Paychecks and Taxes Unit – Understanding Your Paycheck – Slide 17
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
1.13.1.G1
Family Economics & Financial Education
Reading a Paycheck
© Family Economics & Financial Education – Revised March 2008 – Paychecks and Taxes Unit – Understanding Your Paycheck – Slide 18
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
1.13.1.G1
Paycheck Stub
On-The-Go
Employee
Employee Identification
Check #
Beakens, Joe
201-92-4856
164
Check Amount
$1,102.98
Employee Address
293 Michael Grove
Billings, MT 59102
Pay TypeGross Pay
Deductions
Current
Year-to-date
$1,353.33
Federal Withholding
State Withholding
Fed OASDI/EE or Social Security
Fed MED/EE or Medicare
Medical
401K
$106.00
$40.82
$83.91
$19.62
$0.00
$0.00
$503.46
$117.72
$636.00
$244.92
$0.00
$0.00
Totals
$250.35
$1,502.10
Pay Period 6/11/2004-7/11/2004
Paycheck Stub
– A document included each pay period which
outlines paycheck deductions
© Family Economics & Financial Education – Revised March 2008 – Paychecks and Taxes Unit – Understanding Your Paycheck – Slide 19
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
1.13.1.G1
Personal Information
On-The-Go
Employee
Employee Identification
Check #
Beakens, Joe
201-92-4856
164
Check Amount
$1,102.98
Employee Address
293 Michael Grove
Billings, MT 59102
Pay TypeGross Pay
Deductions
Current
Year-to-date
$1,353.33
Federal Withholding
State Withholding
Fed OASDI/EE or Social Security
Fed MED/EE or Medicare
Medical
401K
$106.00
$40.82
$83.91
$19.62
$0.00
$0.00
$503.46
$117.72
$636.00
$244.92
$0.00
$0.00
Totals
$250.35
$1,502.10
Pay Period 6/11/2004-7/11/2004
Personal Information
– States the employee’s full name, address, and Social Security or Employee
Identification number
– Always check to ensure this information is correct
© Family Economics & Financial Education – Revised March 2008 – Paychecks and Taxes Unit – Understanding Your Paycheck – Slide 20
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
1.13.1.G1
Pay Period
On-The-Go
Employee
Employee Identification
Check #
Beakens, Joe
201-92-4856
164
Check Amount
$1,102.98
Employee Address
293 Michael Grove
Billings, MT 59102
Pay TypeGross Pay
Deductions
Current
Year-to-date
$1,353.33
Federal Withholding
State Withholding
Fed OASDI/EE or Social Security
Fed MED/EE or Medicare
Medical
401K
$106.00
$40.82
$83.91
$19.62
$0.00
$0.00
$503.46
$117.72
$636.00
$244.92
$0.00
$0.00
Totals
$250.35
$1,502.10
Pay Period 6/11/2004-7/11/2004
Pay Period
– The length of time for which an employee’s wages are calculated; most are weekly, biweekly, twice a month, or monthly
– The last day of the pay period is not always payday to allow a business to accurately
compute wages
© Family Economics & Financial Education – Revised March 2008 – Paychecks and Taxes Unit – Understanding Your Paycheck – Slide 21
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
1.13.1.G1
Gross Pay
On-The-Go
Employee
Employee Identification
Check #
Beakens, Joe
201-92-4856
164
Check Amount
$1,102.98
Employee Address
293 Michael Grove
Billings, MT 59102
Gross Pay
Pay TypeGross Pay
Deductions
Current
Year-to-date
$1,353.33
Federal Withholding
State Withholding
Fed OASDI/EE or Social Security
Fed MED/EE or Medicare
Medical
401K
$106.00
$40.82
$83.91
$19.62
$0.00
$0.00
$503.46
$117.72
$636.00
$244.92
$0.00
$0.00
Totals
$250.35
$1,502.10
Pay Period 6/11/2004-7/11/2004
– The total amount of money earned during a pay period before deductions
• This is calculated by multiplying the number of hours worked by the hourly rate
• If a person is on salary, it is the total salary amount divided by the specified
number of pay periods
© Family Economics & Financial Education – Revised March 2008 – Paychecks and Taxes Unit – Understanding Your Paycheck – Slide 22
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
1.13.1.G1
What is the Gross Income?
If Miss Patty Paycheck worked at Terrific Tacos for
$9.50/hour for 15 hours a week what will her gross income
be? # hours worked x wage = gross income
15 hours x $9.50/hr. = $142.50/week
What is Miss Patty Paycheck’s gross income for a two week
pay period?
30 hours x $9.50/hr. = $285.00 for 2 weeks
(Planet Paycheck unit)
© Family Economics & Financial Education – Revised March 2008 – Paychecks and Taxes Unit – Understanding Your Paycheck – Slide 23
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
1.13.1.G1
Net Pay
On-The-Go
Employee
Employee Identification
Check #
Beakens, Joe
201-92-4856
164
Check Amount
$1,102.98
Employee Address
293 Michael Grove
Billings, MT 59102
Pay TypeGross Pay
Deductions
Current
Year-to-date
$1,353.33
Federal Withholding
State Withholding
Fed OASDI/EE or Social Security
Fed MED/EE or Medicare
Medical
401K
$106.00
$40.82
$83.91
$19.62
$0.00
$0.00
$503.46
$117.72
$636.00
$244.92
$0.00
$0.00
Totals
$250.35
$1,502.10
Pay Period 6/11/2004-7/11/2004
Net Pay
– The amount of money left after all deductions have been
withheld from the gross pay earned in the pay period
© Family Economics & Financial Education – Revised March 2008 – Paychecks and Taxes Unit – Understanding Your Paycheck – Slide 24
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
1.13.1.G1
Deductions
On-The-Go
Employee
Employee Identification
Check #
Beakens, Joe
201-92-4856
164
Check Amount
$1,102.98
Employee Address
293 Michael Grove
Billings, MT 59102
Pay TypeGross Pay
Deductions
Current
Year-to-date
$1,353.33
Federal Withholding
State Withholding
Fed OASDI/EE or Social Security
Fed MED/EE or Medicare
Medical
401K
$106.00
$40.82
$83.91
$19.62
$0.00
$0.00
$503.46
$117.72
$636.00
$244.92
$0.00
$0.00
Totals
$250.35
$1,502.10
Pay Period 6/11/2004-7/11/2004
Deductions
– The amount of money subtracted from the gross pay earned for mandatory
systematic taxes, employee sponsored medical benefits, and/or retirement
benefits
© Family Economics & Financial Education – Revised March 2008 – Paychecks and Taxes Unit – Understanding Your Paycheck – Slide 25
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
1.13.1.G1
Federal Withholding Tax
On-The-Go
Employee
Employee Identification
Check #
Beakens, Joe
201-92-4856
164
Check Amount
$1,102.98
Employee Address
293 Michael Grove
Billings, MT 59102
Federal Withholding Tax
Pay TypeGross Pay
Deductions
Current
Year-to-date
$1,353.33
Federal Withholding
State Withholding
Fed OASDI/EE or Social Security
Fed MED/EE or Medicare
Medical
401K
$106.00
$40.82
$83.91
$19.62
$0.00
$0.00
$503.46
$117.72
$636.00
$244.92
$0.00
$0.00
Totals
$250.35
$1,502.10
Pay Period 6/11/2004-7/11/2004
– The amount required by law for employers to withhold from earned wages to pay taxes
– The amount of money deducted depends on the amount earned and information provided on
the Form W-4
– Largest deduction withheld from an employee’s gross income
© Family Economics & Financial Education – Revised March 2008 – Paychecks and Taxes Unit – Understanding Your Paycheck – Slide 26
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
1.13.1.G1
State Withholding Tax
On-The-Go
Employee
Employee Identification
Check #
Beakens, Joe
201-92-4856
164
Check Amount
$1,102.98
Employee Address
293 Michael Grove
Billings, MT 59102
Pay TypeGross Pay
Deductions
Current
Year-to-date
$1,353.33
Federal Withholding
State Withholding
Fed OASDI/EE or Social Security
Fed MED/EE or Medicare
Medical
401K
$106.00
$40.82
$83.91
$19.62
$0.00
$0.00
$503.46
$117.72
$636.00
$244.92
$0.00
$0.00
Totals
$250.35
$1,502.10
Pay Period 6/11/2004-7/11/2004
State Withholding Tax
– The percentage deducted from an individual’s paycheck to assist in funding
government agencies within the state
– The percentage deducted depends on the amount of gross pay earned
© Family Economics & Financial Education – Revised March 2008 – Paychecks and Taxes Unit – Understanding Your Paycheck – Slide 27
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
1.13.1.G1
FICA
(Federal Insurance Contribution Act)
On-The-Go
Employee
Employee Identification
Check #
Beakens, Joe
201-92-4856
164
Check Amount
$1,102.98
Employee Address
293 Michael Grove
Billings, MT 59102
Pay TypeGross Pay
Deductions
Current
Year-to-date
$1,353.33
Federal Withholding
State Withholding
Fed OASDI/EE or Social Security
Fed MED/EE or Medicare
Medical
401K
$106.00
$40.82
$83.91
$19.62
$0.00
$0.00
$503.46
$117.72
$636.00
$244.92
$0.00
$0.00
Totals
$250.35
$1,502.10
Pay Period 6/11/2004-7/11/2004
FICA
– This tax includes two separate taxes: Fed OASDI/EE or Social Security and Fed
MED/EE or Medicare
– These two taxes can be combined as one line item or itemized separately on a paycheck
stub
© Family Economics & Financial Education – Revised March 2008 – Paychecks and Taxes Unit – Understanding Your Paycheck – Slide 28
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
1.13.1.G1
Social Security
On-The-Go
Employee
Employee Identification
Check #
Beakens, Joe
201-92-4856
164
Check Amount
$1,102.98
Employee Address
293 Michael Grove
Billings, MT 59102
Pay TypeGross Pay
Deductions
Current
Year-to-date
$1,353.33
Federal Withholding
State Withholding
Fed OASDI/EE or Social Security
Fed MED/EE or Medicare
Medical
401K
$106.00
$40.82
$83.91
$19.62
$0.00
$0.00
$503.46
$117.72
$636.00
$244.92
$0.00
$0.00
Totals
$250.35
$1,502.10
Pay Period 6/11/2004-7/11/2004
Social Security
– Nation’s retirement program, helps provide retirement income for elderly and pays
disability benefits
– Based upon a percentage (6.2%) of gross income, employer matches the contribution
made by the employee
© Family Economics & Financial Education – Revised March 2008 – Paychecks and Taxes Unit – Understanding Your Paycheck – Slide 29
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
1.13.1.G1
Medicare
On-The-Go
Employee
Employee Identification
Check #
Beakens, Joe
201-92-4856
164
Check Amount
$1,102.98
Employee Address
293 Michael Grove
Billings, MT 59102
Pay TypeGross Pay
Deductions
Current
Year-to-date
$1,353.33
Federal Withholding
State Withholding
Fed OASDI/EE or Social Security
Fed MED/EE or Medicare
Medical
401K
$106.00
$40.82
$83.91
$19.62
$0.00
$0.00
$503.46
$117.72
$636.00
$244.92
$0.00
$0.00
Totals
$250.35
$1,502.10
Pay Period 6/11/2004-7/11/2004
Medicare
– Nation’s health care program for the elderly and disabled, provides hospital and
medical insurance to those who qualify
– Based upon a percentage (1.45%) of gross income
© Family Economics & Financial Education – Revised March 2008 – Paychecks and Taxes Unit – Understanding Your Paycheck – Slide 30
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
1.13.1.G1
Miss Patty Paycheck’s Paycheck Stub
• Miss Patty Paycheck’s paycheck includes:
– Gross Income $285.00
– Payroll Withholdings:
• Federal Withholding Tax $19.00
• FICA $21.80
(SS 6.2% & Medicare 1.45%)
What is her Net Income?
• Gross Income– Payroll Withholdings = Net Income
$285.00 – ($19.00 + $21.80) = $244.20
(Planet Paycheck unit)
© Family Economics & Financial Education – Revised March 2008 – Paychecks and Taxes Unit – Understanding Your Paycheck – Slide 31
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
1.13.1.G1
Medical
On-The-Go
Employee
Employee Identification
Check #
Beakens, Joe
201-92-4856
164
Check Amount
$1,102.98
Employee Address
293 Michael Grove
Billings, MT 59102
Pay TypeGross Pay
Deductions
Current
Year-to-date
$1,353.33
Federal Withholding
State Withholding
Fed OASDI/EE or Social Security
Fed MED/EE or Medicare
Medical
401K
$106.00
$40.82
$83.91
$19.62
$0.00
$0.00
$503.46
$117.72
$636.00
$244.92
$0.00
$0.00
Totals
$250.35
$1,502.10
Pay Period 6/11/2004-7/11/2004
Medical
– The amount taken from the employee’s paycheck for medical benefits
– Occurs when the employer has a medical plan for employees but does not pay
full coverage for his/her benefits
© Family Economics & Financial Education – Revised March 2008 – Paychecks and Taxes Unit – Understanding Your Paycheck – Slide 32
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
1.13.1.G1
Retirement Plan
On-The-Go
Employee
Employee Identification
Check #
Beakens, Joe
201-92-4856
164
Check Amount
$1,102.98
Employee Address
293 Michael Grove
Billings, MT 59102
Pay TypeGross Pay
Deductions
Current
Year-to-date
$1,353.33
Federal Withholding
State Withholding
Fed OASDI/EE or Social Security
Fed MED/EE or Medicare
Medical
401K
$106.00
$40.82
$83.91
$19.62
$0.00
$0.00
$503.46
$117.72
$636.00
$244.92
$0.00
$0.00
Totals
$250.35
$1,502.10
Pay Period 6/11/2004-7/11/2004
Retirement Plan
– The amount an employee contributes each pay period to a retirement plan
– A specified percentage of the contribution is often matched by the employer
– May be a 401K, a state, or local retirement plan
© Family Economics & Financial Education – Revised March 2008 – Paychecks and Taxes Unit – Understanding Your Paycheck – Slide 33
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
1.13.1.G1
Year-to-Date
On-The-Go
Employee
Employee Identification
Check #
Beakens, Joe
201-92-4856
164
Check Amount
$1,102.98
Employee Address
293 Michael Grove
Billings, MT 59102
Pay TypeGross Pay
Deductions
Current
Year-to-date
$1,353.33
Federal Withholding
State Withholding
Fed OASDI/EE or Social Security
Fed MED/EE or Medicare
Medical
401K
$106.00
$40.82
$83.91
$19.62
$0.00
$0.00
$503.46
$117.72
$636.00
$244.92
$0.00
$0.00
Totals
$250.35
$1,502.10
Pay Period 6/11/2004-7/11/2004
Year-to-Date
• Total of all of the deductions which have been withheld from an individual’s
paycheck from January 1 to the last day of the pay period indicated on the
paycheck stub
© Family Economics & Financial Education – Revised March 2008 – Paychecks and Taxes Unit – Understanding Your Paycheck – Slide 34
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona