Paycheck 101

The best day of any job is payday. Who doesn’t like to get paid for the hard work they do? And while it’s okay to splurge a little bit every once in a while, you might want to check out the Budget section of this site to help you come up with a plan for your income and expenses.

Where’s the Rest of My Check?

It’s always a shocker to receive your first paycheck and realize just how much Uncle Sam takes out of it in deductions. It’s all part of working in the U.S. Here’s an overview of what exactly gets taken out:

• Federal income tax
• Federal Insurance Compensation Act (a.k.a. Social Security)

The following are possible deductions, depending on where you live:

• State income tax
• City taxes
• SDI – State Disability Insurance

What’s It All Mean?

If you can’t interpret your paycheck stub, you’re not alone! That’s why we’ve included a sample paycheck to explain the above deductions and more. Just move your mouse over the words in blue to find out more about that term.