Career and Income — What gets taken out before the money reaches you.
Your paycheck is smaller than your salary, and knowing why keeps surprises off your bank statement.
Gross vs net pay: Gross pay is your total earnings. Net pay, or take home pay, is what is left after taxes and deductions.
Employers withhold income tax and FICA taxes (which fund Social Security and Medicare) before you ever see the money. A pay stub breaks it all down.
W-4 vs W-2: A W-4 tells your employer how much tax to withhold. A W-2 summarizes your earnings and withholding at year end.
Two people with the same salary can have different take home pay, depending on retirement contributions, insurance, and tax choices.
11 practice questions with explanations. Free, and no account is needed to start.