Future Business Leaders of America (FBLA) Agribusiness Practice Test

Which financial document breaks down the specifics of an employee's income and deductions?

1. Pay stub

2. Tax return

3. W-2 form

4. Invoice

The correct answer is: Pay stub

The pay stub is the financial document that provides a detailed breakdown of an employee's income and deductions. It typically includes crucial information such as gross pay, net pay, and the specific deductions taken out of an employee's earnings, which may encompass items like taxes, health insurance, retirement contributions, and other withholdings. This document serves as a record for employees to understand their earnings for a specific pay period, making it an essential part of personal financial management. On the other hand, a tax return summarizes annual earnings and tax information but does not provide the same level of detail on deductions for individual pay periods. A W-2 form is similar, as it reports annual income and tax withheld, but it is typically issued at the end of the tax year rather than detailing information for each pay cycle. An invoice is a document related to billing for goods or services, unrelated to employee income data.