3. Paycheck Vocabulary
This activity aims to explain a pay stub to understand their earnings, deductions, and takehome pay.
Discuss
When you work, whether it is for a job during the summer or when you’re in your career, you will get paid. The way an employer pays you is called a paycheck. Getting paid is exciting! But when you look at your paycheck you might notice that what you earn is different than what you actually get to keep.
Resource
Paycheck Vocabulary (PowerPoint). Feel free to modify the vocabulary list to meet the student’s needs.
Hourly Rate: The amount of money you earn for each hour of work.
Paycheck or Pay Stub: A paper or online record that shows your pay information.
Pay Period: The set time for which you get paid (like every week or every two weeks).
Pay Date: The date you are actually paid for a pay period.
Overtime: Extra hours worked beyond your regular schedule, usually paid at a higher rate.
Year-to-Date (YTD): The total amount of something from the beginning of the year until now.
Taxes: Money taken from your paycheck by the government to help pay for public services like schools, roads, and emergency services.
Deductions: Money taken out of your paycheck for taxes, insurance, or other reasons.
Gross Pay: The total amount of money you earn before any money is taken out.
Net Pay or Take-Home Pay: The amount of money you actually get after deductions. It’s the amount you can save or spend.
State Income Tax: Money your state government takes from your pay for state programs.
Federal Income Tax: Money the government takes from your pay to fund national programs.
Medicare Tax: Money taken out of your pay to support Medicare, a federal health insurance for some people with disabilities and older adults.
Social Security Tax: Money taken out of your pay to support Social Security, a federal benefit program for some people with disabilities and older adults who have retired.