Students explore paycheck concepts, facts, and statistics by using reasoning, prior knowledge, and preconceptions to decide whether each statement is fact or fiction.
The most common pay period of private (nongovernment) U.S. businesses is monthly. Fact or fiction?
Fiction: The most common pay period for private U.S. businesses is biweekly (every 2 weeks), followedby weekly.
15
If a worker chooses to participate in a company-sponsored health insurance plan, the premium (payment) will likely be deducted from the worker’s paycheck, reducing the net pay. Fact or fiction?
Fact
15
The pay for an hourly employee is calculated the same way that the pay for a salaried employee is calculated. Fact or fiction?
Fiction: An hourly employee earns an hourly rate (e.g., $20 per hour)while a salaried employee earns an annual salary (e.g., $50,000 per year)
15
If workers do not have a bank account, they can cash a paycheck at a check-cashing service or at some banks, but they will likely be charged a fee for doing so. Fact or fiction?
Fact
15
If two employees earn the same gross pay, then they must receive the same net pay. Fact or fiction?
Fiction: Depending on their specific paycheck withholdings, their net pay may differ even if their grosspay is the same.
15
It is important that workers review their pay stubs to check for errors. Fact or fiction?
Fact
15
A company may use an electronic or paper timesheet to record workers’ hours. Fact or fiction?
Fact
15
All workers pay the same percentage of federal income tax. Fact or fiction?
Fiction Federal income tax rates (percentages) increase as income increases. Lower-earning workers have a lower tax rate than higher-earning workers .
