An official form issued by a company which can be cashed at designated financial institutions.Pay stubBasically a receipt for record-keeping. Identifies all of the items and amounts used in calculating the final amount of the pay check.
Pay period
The time covered between pay checks. Can be daily (rare), weekly,monthly, bi-weekly (every 2 weeks), or bi-monthly (twice a month, usually in the middle and end of the month).
Pay rate
An agreed amount that the company pays per unit of time worked or unit of work done.GrossThe base employee income for a specified period, based on pay rate. Can be:Salary (a fixed amount, daily/weekly/monthly, which is adjustedbased on number of days worked/not worked)Wage (an hourly rate adjusted for the number of hours worked)Piece (a certain amount for each unit of work done)The gross income can also be adjusted for items such as commissions and bonuses.Commissions Money earned on a regular basis based on previous sales made.
BonusesMoney paid by the company for various reasons, such as meeting objectives, productivity incentives, special events (e.g. Xmas), etc.
Deductions
Deductions are amounts retained by the company from your gross amount.They are also commonly referred to as deductions at source. Some of the more common deductions are:Income tax (federal, state(U.S.) or provincial(Canada), municipal in some locations)Pension (employee contributions for retirement. A common plan in the United States is the 401K plan).
Medical (to pay for medical insurance. This is more common in America. In Canada, every citizen is already covered by a global plan called Medicare, so the company plan most commonly found there is for dental care, which isn't covered by Medicare)Charity (donations made to a charity of the employee's choice)
Net
The amount left after all deductions have been made from the gross income.This is what you finally get to put in your pocket!RaiseAdjustment of pay rate, usually based on performance, cost of living, or promotion.Direct depositElectronic transfer of your net amount to a bank.
