Total Points Earned35 Total Points Possible

Percentage

Understanding Your Paycheck EssentialsName

Date

Class

Employment Forms

What is the purpose of the Form W-4?

How does a Form W-4 relate to income taxes?

What are taxes?

What is the largest category of taxes citizens pay?

What is an item or service that you use every day that is paid for by taxes?

Illustrate howemployers determine how much money to

withhold from anemployees paycheck to pay federal income tax.

Amount of federal income tax withheld

from paycheck

What is the Form I-9?

Payment Methods

Advantages:

What is a paper paycheck? Characteristics:

Disadvantages

Advantages:

What is direct deposit? Characteristics:

Disadvantages

Advantages:

What is a payroll card? Characteristics:

Disadvantages

Which payment method would work best for you? What is a pay period?

Reading a Paycheck Stub

Summarize each section of the paycheck stub below.

Personal Information

Pay Period

Gross Income

Net Income

Payroll Withholdings

Federal WithholdingTax

State Withholding Tax

FICA

Social Security

Medicare

Retirement Plan

Medical

Year-to-Date

7.13.2.A2Worksheet

Advantages and Disadvantages ofPayment Methods

Paper Paycheck

Direct Deposit

Payroll Cards

© Family Economics & Financial Education – October 2010 – The Essentials to Take Charge of Your Finances –Understanding Your Paycheck Essentials– Page 13Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona

Sample Paycheck Stub7.13.2.E1Resource

On-The-Go

EmployeeBeakens, Joe

Employee Identification201-92-4856

Check #164

Check Amount$1,102.98

Employee Address293 Michael GroveBillings, MT 59102

Pay Type- Gross Pay

Deductions Current Year-to-date

$1,353.33 Federal WithholdingState WithholdingFed OASDI/EE or SocialSecurityFed MED/EE or MedicareMedical401K

$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

© Family Economics & Financial Education – October 2010 – The Essentials to Take Charge of Your Finances –Understanding Your Paycheck Essentials– Page 14Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona