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Financial Literacy
Grade 9-12
First Job & Paystub Reading Cheat Sheet
A printable reference covering gross pay, net pay, taxes, deductions, pay periods, overtime, and paystub terms for grades 9-12.
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This cheat sheet helps students understand the money details that come with a first job. It explains how wages turn into take-home pay and why a paystub may show less money than expected. Students need these skills to check that they are paid correctly, plan a budget, and understand workplace paperwork.
Key Facts
- Gross pay is the total amount earned before taxes and deductions are taken out.
- Net pay is the amount you take home after taxes and deductions, so net pay = gross pay - total deductions.
- Hourly gross pay is calculated as hourly rate x hours worked, before any overtime or deductions.
- Overtime pay is often calculated as 1.5 x hourly rate x overtime hours, but exact rules can vary by state and employer.
- A pay period is the time covered by one paycheck, such as weekly, biweekly, semimonthly, or monthly.
- Year-to-date, or YTD, shows the total amount earned or deducted from the start of the year through the current paycheck.
- Mandatory deductions usually include federal income tax, state or local taxes where required, Social Security, and Medicare.
- Voluntary deductions are amounts you choose to have taken out, such as retirement contributions, health insurance, or savings deposits.
Vocabulary
- Gross Pay
- Gross pay is the total money earned before taxes, insurance, retirement, or other deductions are subtracted.
- Net Pay
- Net pay is the amount of money left after all deductions are taken out of gross pay.
- Deduction
- A deduction is money subtracted from your paycheck for taxes, benefits, savings, or other required or chosen payments.
- Withholding
- Withholding is the amount an employer takes from your paycheck and sends to the government for income taxes.
- FICA
- FICA is the payroll tax that funds Social Security and Medicare.
- Year-to-Date
- Year-to-date shows the total earnings, taxes, or deductions recorded so far during the calendar year.
Common Mistakes to Avoid
- Confusing gross pay with net pay is wrong because gross pay is before deductions, while net pay is the money actually received.
- Ignoring hours worked can lead to missed pay because students should compare scheduled hours, time clock records, and the hours listed on the paystub.
- Forgetting to check the pay period is wrong because one paycheck may cover one week, two weeks, or another time range.
- Assuming every deduction is an error is wrong because taxes and some benefit deductions are normal parts of payroll.
- Not reviewing YTD totals is a mistake because year-to-date numbers help you track total income, taxes paid, and whether records look consistent over time.
Practice Questions
- 1 You earn $14 per hour and work 22 hours in one week. What is your gross pay before taxes and deductions?
- 2 Your gross pay is 86.50. What is your net pay?
- 3 You earn $16 per hour, work 40 regular hours, and work 5 overtime hours paid at 1.5 times your regular rate. What is your total gross pay?
- 4 A student notices their net pay is much lower than their gross pay. Explain two paystub items they should check before assuming the paycheck is wrong.