Paycheck -frequently asked questions

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What is a Paycheck

 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. 

Is Paycheck Cash?

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

Calculate Paycheck

1. Gross Salary

total hrs * Hourly rate + Vacation & Incentive Pay

2. Deductions

Health insurance, Retirement plans, & Medical Savings plan

2. Taxes

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.

Federal Withholding

Minors don’t have to pay taxes as long as they make less than the standard deduction.

Taxes on Minors


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

How to reduce Taxes?

3 in 5 Americans lived paycheck to paycheck in April 2022. That includes 30% of those earning over $250,000

Americans Living Paycheck to Paycheck