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How Gross Is Your Net Pay?



How Gross Is Your Net Pay?
Reading Level
     edHelper's suggested reading level:   high interest, readability grades 3 to 5
     Flesch-Kincaid grade level:   2.6

Vocabulary
     challenging words:    deduction, fica, hourly, multiplying, payroll, pointed, stub, supervisor, federal, paycheck, listed, gross, rate, third, kidding, okay
     content words:    Gross Pay, Federal Income Tax, Insurance Contribution Act, Social Security, Total Deductions


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How Gross Is Your Net Pay?
By Patti Hutchison
  

1     "Okay," John said, "this is my third paycheck. I still don't understand how to read the part that's attached to it."
 
2     "That's your pay stub," Lisa said. "It's a record of how much money you make."
 
3     "Speaking of that, why is my paycheck so much less than my gross pay?" John asked.
 
4     "It's because of all the deductions. There are certain amounts the payroll department takes out of your pay each week. May I look at your pay stub? I'll try to explain it to you."
 
5     "Sure," John said, "I need all the help I can get."
 
6     Lisa looked at John's pay stub. She pointed to where it said "Gross Pay." She reminded him how to check his gross pay by multiplying the hours he worked by his hourly pay rate. John said that he remembered to do this every time he got paid.
 
7     "Good for you," Lisa commended. "Now, let's look at your deductions. They are listed by all these strange initials."
 
8     "No kidding," John scowled. "Who can read this stuff?"
 
9     Lisa told John about his deductions. She said that most of them are taxes that go to the government. Everyone has to pay taxes on the money they make. This money helps to run the government.

Paragraphs 10 to 21:
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