Your first paycheck (why it's smaller than you thought)
The number on your pay stub almost never matches what hits your bank. Here's why — in plain English.
Say you got hired at $15/hour and worked 10 hours. You'd expect $150, right? Nope. Your real check is closer to $125–$135. The missing money went to taxes — money the government uses for roads, schools, and other things we share.
What gets taken out
- •Federal income tax — varies by income; for most teens, very little or zero.
- •Social Security & Medicare (FICA) — flat 6.2% + 1.45% = 7.65% of every paycheck. Always there, no matter your bracket.
- •State income tax — depends on where you live (TX, FL, WA, NV, TN have none).
7.65%
FICA — the unavoidable part
Even if your federal income tax is $0 (because you earn under the standard deduction), FICA is still pulled from every paycheck.
'Gross pay' = the big number before taxes. 'Net pay' = what actually lands in your bank. Always plan around NET.
Real life: meet Jamie's first stub
Jamie made $150 (10 hours × $15) at a smoothie shop. The stub showed $11.48 in FICA, $0 federal (under the standard deduction), and $4.50 state. Net: $134.02.
Gross $150 · Net $134.02 · ~10.7% gone
Takeaway
When you start earning real money, ignore the 'big number' and look at what shows up in your account. That's the number you can spend.
Which payroll tax always comes out, even if you owe $0 federal income tax?
Takeaway: Net is the only number that matters for what you can actually spend.
Try together: Pull the learner's last paystub (or print a sample). Together, label each line and calculate the net-to-gross ratio.