| A | B |
|---|
| deductions | Money subtracted from gross pay for required taxes |
| federal tax | The amount required by law for employers to withhold from earned wages to pay federal income taxes. |
| state tax | The percentage deducted from an individual's paycheck to assist in funding government agencies within the state. |
| job related expenses | Expenses deducted from a paycheck that are necessary to perform the job (e.g. specialized equipment |
| earnings statement | The paycheck stub listing gross pay and deductions. |
| net pay | The amount of money left after all the deductions have been taken from the gross pay earned in the pay period. |
| FICA | Federal Insurance Contributions Act. This tax includes Social Security and Medicare. Social Security taxes are based on a 6.2 percentage of the employee's gross income. Medicare is 1.45% of gross income. Social Security and Medicare are programs that help older individual with their living expenses and medical costs. |
| net pay(take -home pay) | The amount of money an employee receives after all deductions have been taken out. |
| salary | The amount of money an employer pays an employee for work performed. |
| paycheck | A form of payment to an employee. |
