If an employee earns $20 per hour and works 40 hours, the net pay is $800. Fact or fiction?
Fiction: The gross pay, not net pay, is $800. Net pay equals gross pay minus deductions and taxes.
From each paycheck, 6.2% of a worker’s gross pay is withheld for Social Security (retirement and disability benefits) and 1.45% is withheld for Medicare (health care for those over 65). Fact or fiction?
Fact
A direct deposit occurs when an employer electronically transfers money into the worker’s designated bank account on payday; the worker does not receive a paper paycheck. Fact or fiction?
Fact
Your experience on this site will be improved by allowing cookies.