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Understanding Your Pay Check
2
Understanding Your Paycheck
Paycheck
Federal Goverment Taxes
Paystub
Medicare
1.45% of Gross Earnings
The Money Goes Towards:
Health Insurance for Persons 65 & Older
Health Insurance for Diabled Persons
Net Pay
Gross Earnings - Deductions
Federal Withholding
Based on Gross Earnings & Withholdings
The Money Goes Towards:
Federal Government Programs:
Military | Veterans | National Defense
Social Services | Food & Housing Assistance
Public Schools | Financial Aid
NASA | Technology Research
Gross Earnings
Earnings before deductions
OASDI
Old Age, Survivors and Disability Insurance
AKA
Social Security
6.5% of Gross Earnings
Current Workers Pay for Past Workers
This Money Goes Towards:
Retired Workers & Their Families - Age 62 & Up
Survivors of Deceased Workers
Disabled Workers & Their Families
Regular Pay
Hours Worked x Pay Rate