Reading a Pay Stub
CHAPTER 10, LESSON 2
NAME DATE
Chris Theisen 12/3/24
DIRECTIONS
Review the key terms below. Then, use the information on the Sample Pay Stub to answer the questions that
follow. The sample employee is paid semi-monthly.
Key Terms
• Pay Period: set length of time over which employee time is recorded and paid
» Weekly (every week; 52 pay periods per year)
» Biweekly (every two weeks; 26 pay periods per year)
» Semi-monthly (twice per month; 24 pay periods per year)
» Monthly (once a month; 12 pay periods per year)
• Gross Pay: a person’s total earnings before payroll taxes and other deductions are
taken out
• Net Pay: a person’s earnings after payroll taxes and other deductions are taken out
• Payroll Deduction: the amount subtracted from gross pay, which results in your
net pay
• Pension: a sum of money paid regularly as a retirement benefit
• 401(k): a tax-deferred retirement savings plan offered by a company to its employees
who contribute money from their gross pay
• FICA (Federal Insurance Contributions Act): a payroll tax used to fund Social Security
and Medicare
FO U N DATI O NS I N PERSONA L FI NA NCE PAGE 1 O F 4
Sample Pay Stub
EXAMPLE COMPANY, INC. JANE DOE
555 MAIN STREET EMPLOYEE ID: 000004
ANYCITY, AR 12345 DEPARTMENT: 000200
DD RECEIPT: 123456789
Pay Period 09/1/2021 - 09/15/2021 FITWH Filing Status: S Exemptions: 1
Pay Date 10/01/2021 TN
Earnings RATE HOUR/UNIT CURRENT YTD HOUR/UNIT YTD
Holiday 15.00 8.00 120.00
Vacation 15.00 8.00 120.00
Regular 15.00 64.00 960.00
Total $1,200.00 $17,622.50
Deductions CURRENT YTD Taxes CURRENT YTD
HLTH 43.75 612.50 FITWH 157.39 2396.21
EXMPLCO 401K 48.00 704.90 MED 14.67 220.05
Total $91.75 $1,317.40 SOC 62.31 934.35
STATE TAX 40.06 599.12
CITY TAX 23.13 340.27
Total $297.56 $4,490.00
Net Pay XXX4444 $810.69
THIS IS NOT A CHECK. THIS DOCUMENT IS TO BE USED FOR INFORMATIONAL PURPOSES ONLY.
EXAMPLE COMPANY, INC.
555 MAIN STREET
ANYCITY, AR 12345 Direct Deposit # 123456789
Date 10/01/2021
Pay this Amount
** N O N - N E G O T I A B L E ** D I R E C T D E P O S I T R E C E I P T ** VOID ** VOID **
DIRECT DEPOSIT $810.69
000000 DD TO ACCOUNT # XXX4444
Pay to the
BANK # XXXXX1111
Order of JANE DOE
123 LAMPO DRIVE
NON-NEGOTIABLE
ANYCITY, AR 12345
FO U N DATI O NS I N PERSONA L FI NA NCE PAGE 2 O F 4
Reading a Pay Stub
CHAPTER 10, LESSON 2
1. What is the employee’s gross pay?
$1200
2. How much local tax is deducted from the paycheck?
$23.23
3. How much state tax is deducted from the paycheck?
$40.06
4. How much federal tax is deducted from the paycheck?
$157.39
5. How much did the employee contribute to FICA?
$76.98
6. How much did the employee contribute to Medicare?
$14.67
7. How much did the employee pay for other (nontax) deductions?
$91.75
8. What was the purpose of the other deductions?
retirement plan
9. What percentage of the employee’s income is set aside for retirement?
4%
FO U N DATI O NS I N PERSONA L FI NA NCE PAGE 3 O F 4
Reading a Pay Stub
CHAPTER 10, LESSON 2
10. What is the employee’s net pay?
$810.69
11. What percent of the employee’s paycheck is deducted for taxes and other expenses?
%2.97
12. How many hours did the employee work during this pay period? How much is the
employee paid per hour?
Worked 64 hours and 16 additionally making 15 and hour
13. How much does this employee pay monthly for health insurance?
$87.50
FO U N DATI O NS I N PERSONA L FI NA NCE PAGE 4 O F 4
