Paycheck Fact or Fiction? | Baamboozle - Baamboozle

English 40 Public

Students explore paycheck concepts, facts, and statistics by using reasoning, prior knowledge, and preconceptions to decide whether each statement is fact or fiction.

Study Slideshow

#paycheck #career #adulting #salary

Workers should carefully consider how they spend and save their paycheck. Fact or fiction?

Fact

15

Overtime is generally considered hours worked over 40 in a week. Fact or fiction?

Fact

15

The size of one’s paycheck is a good way to judge a person’s character and abilities. Fact or fiction?

Fiction

15

Wage theft occurs when a worker steals money from an employer. Fact or fiction?

Fiction: Wage theft is an illegal practice that occurs when an employer does not pay a worker rightfully owed wages.

15

Another term for take-home pay is gross pay. Fact or fiction?

Fiction: Another term for take-home pay is net pay. Net pay equals gross pay minus deductions andtaxes.

15

If a worker’s pay stub shows a line item for ****, it relates to Social Security and Medicare withholdings. Fact or fiction?

Fact: FICA is the acronym for Federal Insurance Contributions Act, which addresses payroll contributionsfor Social Security and Medicare programs.

15

Federal income tax withholdings can reduce a person’s net pay. Fact or fiction?

Fact

15

All U.S. states withhold state income tax from workers’ paychecks. Fact or fiction?

Fiction: Most, but not all U.S. states, have a state income tax.

15

Health insurance premiums, union dues, and retirement plans like 401(k)s are all types of paycheck deductions that can decrease a worker’s net pay. Fact or fiction?

Fact

15

If a worker’s base pay is $36,000 per year and paychecks are issued on a monthly basis, the gross monthly pay is $3,000. Fact or fiction?

Fact

15

Only workers over the age of 65 must have Medicare taxes withheld from paychecks. Fact or fiction?

Fiction: Although Medicare provides health care for those over age 65, all workers must pay the tax.

15

A nonexempt worker earns an annual salary and does not receive overtime pay. Fact or fiction?

Fiction: An exempt worker, not a nonexempt worker, earns an annual salary but is not required toreceive overtime pay.

15

Minimum wage earners tend to be younger in age and work part-time hours. Fact or fiction?

Fact

15

A worker earned $5,000 in base pay and $1,000 in overtime last month. The employer withholds $2,000 (for taxes, health insurance, and a 401(k) plan). The net monthly pay is $4,000. Fact or fiction?

Fact: Net pay is gross pay minus withholdings. In this case, gross pay is $6,000 and withholdings are $2,000, so net pay = $6,000 − $2,000 = $4,000.

15

The phrase living paycheck to paycheck means a person spends nearly all earnings on expenses and has little savings in the event of a financial emergency. Fact or fiction?

Fact

15

A company’s pay period determines how often a worker is paid. Fact or fiction?

Fact

15