Level 1 — Money Basics · 5 Min.
Reading Your Paycheck
Gross, net, and the lines in between — including the ones that are secretly yours.
Gross pay is the headline number; net (take-home) is what lands in the bank. In between: federal and state taxes, Social Security and Medicare (FICA), and your elections — insurance premiums, retirement contributions, FSA/HSA money.
Two in-between lines are actually YOUR money in disguise: retirement contributions (especially any employer-matched part — that match is salary you must claim) and pre-tax accounts like HSAs, which cut your tax bill while funding real needs.
Budget from net, always. And once a year, glance at the W-4 withholding: a giant refund means you lent the government your own cash interest-free all year; a surprise bill means the reverse. The IRS withholding estimator (free, official) tunes it.
- Gross vs. net
- Before deductions vs. what you actually receive.
- FICA
- Social Security + Medicare payroll taxes.
- Employer match
- Retirement money your employer adds when you contribute — part of pay.