Paychecks
by Brad Worthington
Direct Deposits
- Your Employer automatically places your paycheck into a despository institution account
- Most safe way to hand a paychek because it is done online
- You also know exactly when your paychek will be deposited and avialable
Deductions
- This is the amount of money that is taken out of your paycheck
- They are usually taxes, medical, or retirement benefits
- They make you frustrated that you don't get all of the money in your paycheck
Retirement Plan
- It's the amount that you contribute to your retirement plan
- You need to start saving for this so you end up with a lot of money to retire
- Deduction is based on a certain percentage of your gross pay
Form W-4
- Used to determine the percentage of gross pay withheld for taxes
- Can be in two ways: Allowance and Dependent
- You rely on the taxpayer for financial support if dependent
- Allowance determines the amount of federal taxes withheld from the paycheck