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Paycheck

Gross Pay

Amount of money earned before reductions.

The form that an employer must send to an employer and the IRS at the end of the year. The form reports an employee's annual wages and the amount of taxes witheld from paycheck.

W-2

Net Pay

Amount of money you take home after deductions.

Deductions

money withheld by your employer.

W-4

a form completed by a new employee. the form tells the employer the correct amount of tax to withold from a paycheck.

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