Level 2. Understanding Taxes & Deductions

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Take a look at an example paystub to understand where your money actually goes!

United States

#	Jeux	Précision	temps
1	WM 1 Février 2026	% 100	00:18

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Level 2. Understanding Taxes & DeductionsVersion en ligne Take a look at an example paystub to understand where your money actually goes! par WM 1 PAY STUB 2 EARNINGS 3 GROSS PAY 4 YEAR TO DATE (YTD) 5 FEDERAL TAX 6 STATE TAX 7 FICA 8 401(k) 9 OTHER 10 NET PAY Explanation 1 A breakdown of your paycheck that shows you how much you earned, what was taken out, and what you actually get paid 2 Earnings show how your money was made ($14/hr for 40 hrs), which is used to calculate your gross pay 3 Your total pay before any taxes and deductions are factored in 4 This shows how much money you've earned and paid in taxes this year 5 This is money taken out of your paycheck to fund national government programs and services (law enforcement, national defense, etc) 6 This is money taken out of your paycheck to fund state government services (transportation, parks & recreation, etc) 7 This tax pays for Social Security and Medicare, which support retirees and healthcare 8 This is money taken out of your check to fund your retirement (instead of a 401(k), you could also see 457(b), 403(b), TSP, ESOP, etc) 9 This is money taken out of your paycheck that may fund any additional plan you set up (HSA, life insurance, charitable donations, etc) 10 This is the money you take home after all taxes and deductions are made from your gross pay (Net Pay = Gross Pay - Deductions)