00:00coinage life well spent presented by Geico it's payday mayday you've gotten your pay stub and
00:08you're not sure what all the numbers mean we're here to help the gross pay section is what you
00:12earned before any deductions for taxes 401k contributions and the like the net pay section
00:18is your take-home pay the amount that will be reflected on your paycheck or appearing in your
00:21bank account if you have direct deposit the net pay is much lower than the gross pay so what gives
00:27one section is FICA 7.65% of most people's income FICA funds Medicare and Social Security programs
00:34that provide benefits for retirees disabled people and children you probably signed up to have some
00:38money subtracted from your pay before tax to pay for health coverage and contribute to a 401k your
00:43employee deductions and contributions cover your pre-tax dollars going to health dental vision and
00:48retirement accounts then you've got your federal income tax and depending on where you live state
00:53and city tax now you've got your payday don't spend it all in one place and if you could spare a few
00:58more dollars beef up your 401k deduction coinage life well spent presented by Geico
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