| A | B |
|---|
| gross pay | the total amount of salary paid before any decutions are taken out |
| net pay | the amount of salary received after taxes and decutions have been taken out |
| taxes | payments made to the government that are withheld from income |
| deductions | money taked out of a paycheck for retirement accoutns and eligible medical and dental insurance plans. |
| federal income tax | taxes taken out of a paycheck that goes to the federal government |
| 401K | an investment account that is used for retirement. The income paid to this account is tax-deferred. |
| city-local income tax | taxes taken out of a paycheck that goes to the city/local government |
| city-local taxes | not everyone pays these taxes; it depends on where you live and work |
| social security | withholdings that go into the federal government program that provides income support to people who are unemployed, disabled or over the age of 65 |
| medicare | withholds that go into the federal health insurance program for people 65 and older, and also for people with disibilities |
| state income tax | taxes taken out of a paycheck that goes to the state government |
