Earning a Living - Your Paycheck

work photoThere are many different sources of income. Some of them are earned, which means you have to do something to receive it, like work. Some income is unearned, gift photowhich means it comes from a source other than work. Unearned income is usually given to you by someone else, and you didn’t have to work to get it – like birthday money from your grandmother.

After completing the first topic of this module, you now have the knowledge to help you land a position in your chosen career field. After you are hired, the law requires that you complete a W-4 Form. The information you provide on the W-4 form determines how much your employer will withhold from your gross pay. The amount withheld is determined by the number of allowances you claim. An allowance is a number that reduces the amount of tax that will be withheld from your paycheck. The more allowances you claim, the less tax you will pay each pay period. Make sure to read the directions very carefully when filling out your W-4 Form. You don't want to have too much or too little taken out of your paycheck. You will explore the W-4 Form in more detail in the Taxes Module.

Earned Income InteractivityEarned Income

Most of your income will probably come from your employment. The amount of income you receive will be determined largely by which career you choose to pursue. Remember, careers that require more human capital (skills and knowledge) usually pay more. Careers that are in demand also typically pay more. Watch this presentation to learn more about earned income.

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Unearned Income InteractivityUnearned Income

There are other ways of earning money besides receiving a paycheck. Watch this presentation to learn more about ways to receive unearned income.

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Your Paycheck InteractivityYour Paycheck

Your paycheck reflects not only your salary but also your deductions. Watch this presentation to better understand concepts like gross pay, net pay, benefits, incentives and more.

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self-check iconCalculations Practice InteractivityNow that you have learned about earning a living, review your knowledge in this interactivity. Click the player button to get started.