| A | B |
|---|
| deductions | Money subtracted from gross pay for required taxes, employee insurance, and retirement benefits. |
| federal income tax | The amount required by law for employers to withhold from earned wages to pay federal income taxes. |
| state income tax | The percentage based on income deducted from a person's paycheck by the state government to pay for government provided services such as roads, public schools and parks. |
| job related expenses | Expenses deducted from a paycheck that are necessary to perform the job (e.g. specialized equipment, uniforms). |
| earning statements | The paycheck stub listing gross pay and deductions. |
| FICA | Federal Insurance Contributions Act (FICA) FICA is a federal tax that funds Social Security and Medicare. Social Security and Medicare are income and insurance programs that help older Americans. Total FICA deducted from a person's gross pay each pay period is 7.65%. |
| net pay (take home pay) | The amount of money an employee receives after all deductions have been taken out. |
| paycheck | A form of payment to an employee. |
| overtime | The amount of time a person works beyond 40 hours in a work week |
| overtime pay | Pay for work beyond 40 hours n a work week that is at least one and one-half times the regular rate of pay. |
