Gross Pay
The amount of money earned before deductions are taken.
Federal Income Tax
Federal Income Tax is a progressive tax. A progressive tax is a type of tax where the tax rate expressed as a percentage increases as the amount to which the rate is applied increases.
Federal Insurance Compensation Act (FICA)
FICA is the official name for Social Security and Medicare taxes. The social security tax is a certain percentage of your gross income.
State and Local Income Taxes
The tax rate depends on which state and town you live in.
Net Pay
Your net pay--often called your "take home pay"--is the remaining amount you get to keep after all deductions are removed from your gross (or total) pay.
