It is the compensation for an employee’s services to the employer
Paycheck is a payment of wages or salary.
A paycheck is money that the employer writes under your name for the job rendered.
It is a check, but you can cash it at check-cashing businesses.
- Weekly pay period = 52 checks
-Bi- Weekly pay period = 26 checks
-Semi-monthly pay period = 24 checks
- Monthly pay period = 12 checks
1. Gross Salary
total hrs * Hourly rate + Vacation & Incentive Pay
Health insurance, Retirement plans, & Medical Savings plan
Federal taxes, SSN & Medicare Taxes
Paycheck = Gross Salary - Deductions - Taxes
If your earnings do not exceed the standard deduction, you don’t have to pay taxes and file tax returns.
Minors don’t have to pay taxes as long as they make less than the standard deduction.
FICA stands for Federal Insurance Contributions Act
FICA helps fund Social Security and Medicare programs run by the Government.
OASDI stands for Old-Aged, Survivor, and Disability Insurance program.
It is none other than the Social Security tax that is deducted from paycheck directly.
The best way to get taxed less at the year-end is by investing in the tax advantage accounts. 401(k), IRA, 457b, 529, HSA, etc., are tax-deferred accounts
3 in 5 Americans lived paycheck to paycheck in April 2022. That includes 30% of those earning over $250,000