21st Century Student FinLit -Getting Personal SW

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Reflecting on… Honey, They Shrunk My Paycheck

LET’S PRACTICE

Name: _____________________________________________________________________________

Help Henry Decipher the Deductions Henry, a new employee at TooTechieTwo, just received his first paycheck. He’s confused because there seems to be a lot of money missing. He was also given a paycheck stub. Apparently, it will clarify where the money has gone. But it looks as if it’s written in code. Your job: Help Henry Decipher the Deductions.

Employee Henry

Company HTH Number 150 Social Security # 000-00-0000

Period Begin 8/1/2016 Period End 8/14/2016 Check Date 8/17/2016 Check Number 858563

Division West Branch 19 Department 12 Team

TT2

A

A. What do these dates refer to? _ ______________________________________________________________________________ B. Henry notices that one side of the paystub says Earnings and the other says Deductions (F). What categories make up “Earnings”? _ ______________________________________________________________________________ C. How much did Henry earn in base salary this pay period? This year? What did he earn in incentive pay and what might that include? Wow he earned a big bonus! Where is this found? _ ______________________________________________________________________________ _ ______________________________________________________________________________ D. What does 401K refer to? How much did Henry’s employer contribute to his 401K account this pay period? How much has the employer contributed this year? _ ______________________________________________________________________________ _ ______________________________________________________________________________ PRODUCT PREVIEW Earnings Total Earnings Description Location / Job Rate Regular Earnings Salary Bonus (Annual) Incentive Pay 401K ER Match Deductions PAYSTUB Total Deductions Description Fed (S/D) OASDI Medicare State Misc Deduction EE Life Ins 401k EE Deduction H I 1/1/101 1/1/101 1/1/101 1/1/101 1/1/101 0.00 0.00 0.00 0.00 Hours / Pieces 40.00 0.00 0.00 0.00 0.00 Current 0.00 2500.00 5000.00 500.00 320.00 Year To Date 0.00 15000.00 5000.00 500.00 820.00 20500.00 Year To Date 4927.30 861.00 297.25 1182.57 100.00 820.00 Current 2237.60 336.00 116.00 537.02 320.00 40.00 8000.00 8188.12 3546.62 NET PAY Total Direct Deposits Check Amount 0.00 4453.38 12311.88 4453.38 F G D J K

B

C

L

E

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THE 21st CENTURY STUDENT’S GUIDE TO FINANCIAL LITERACY

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