Title: (Optional) Compute gross and net pay.
Course: Principles of Business and Marketing (12051-18) > Section: Making Sound Business Decisions

Computation should include working with real or simulated paycheck stubs to calculate

- gross pay (wages/salary)
- deductions such as federal and state taxes, Federal Insurance Contributions Act (FICA), and others (e.g., investments, health insurance, retirement savings)
- net pay (gross pay minus deductions).

Process/Skill Questions:

- What is gross pay?
- Why is it important to understand the difference between gross and net pay?
- How is net pay calculated?
- What deductions are standard?
- What are examples of additional, optional deductions offered to individuals? What may be the benefits of such deductions?
- What obligation does an employer have to make the correct deductions and pay taxes?