| A | B |
|---|
| Gross Pay | How much you make before anything is taken out |
| Net Pay | Take home pay. What’s left after all of the deductions have been subtracted |
| Deductions | This is what is taken out of your check. These are subtracted from gross pay |
| Federal Tax | Military, National Parks, Highways, Schools, Political System |
| State Tax | Schools, Welfare, Police, State Parks |
| FICA | Federal Insurance Contribution Act |
| Medicare | Health Insurance for the elderly- age 65 and up |
| Medicaid | Health insurance for the poor |
| Health Insurance | An insurance coverage that pays for medical and dental. |
| Retirement Plan | A financial arrangement designed to replace employment income upon retirement. |
| Stock | Most Risk. It is one share or ownership in a company |
| Mutual Fund | Moderate risk. A group of stocks of numerous companies |
| Savings | Least risky, you get a very small amount of interest |
| 401K | The Company gives you a matching contribution, 5000 + 2500 = 7500 |
| 403B | Employer makes no contribution $5000 |
| Pre-Tax Dollars | The deductions are taken off your gross income before income taxes are paid. Taxes are then calculated on the reduced salary amount. |
