Paycheck

Gross Pay

Net Pay

amount of money you take home after deductions

amount of money earned before deductions

Deductions

money held by your employer

W-2

W-4

The form an employer must send to an employee and the IRS at the end of the year. The form reports an employee's annual wages and the mount of taxes withheld from his or her paycheck.

The form completed by a new employee. The W-4 form tells the employer the correct amount of tax to withhold from an employee's paycheck.