Future Business Leaders of America (FBLA) Agribusiness Practice Test

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Enhance your FBLA Agribusiness knowledge with our comprehensive test. Dive into flashcards and multiple-choice questions, complete with hints and explanations, to ensure exam success. Prepare confidently for a bright future!

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What information does a pay stub typically include?

Gross pay only
Withholdings only
Net pay only
Gross pay, withholdings, and net pay

The correct answer is: Gross pay, withholdings, and net pay

A pay stub serves as a detailed record of an employee’s earnings and deductions for a specific pay period. It typically includes gross pay, which is the total amount earned before any deductions like taxes and benefits. The pay stub also lists withholdings, representing the amounts deducted from gross pay for taxes (federal, state, and local), Social Security, Medicare, retirement contributions, and other benefits. Finally, net pay is included as well, which indicates the amount the employee actually takes home after all deductions have been subtracted from the gross pay. By providing all three categories of information—gross pay, withholdings, and net pay—the pay stub offers a comprehensive view of an employee's earnings and the impact of deductions, thus ensuring transparency in the payroll process.