Computation of gross and net pay should include working with real or mock paycheck stubs to consider
- gross pay (i.e., wages/salary)
- deductions (e.g., federal and state taxes, Federal Insurance Contributions Act (FICA)
- net pay (i.e., gross pay minus deductions).
Process/Skill Questions:
- What is FICA?
- How is gross pay computed?
- What are examples of deductions that might be taken out of one’s paycheck?
- Why are these deductions taken?
- How are the various deductions calculated?