englishpod_0317dg

The Office ‐ First Paycheck (C0317) 
Emily: Hey, Susan. Have you got a sec? I have some
questions about my paycheck.
Susan: You bet, Emily. Pull up a chair.
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Emily: Well, this is my first paycheck here inthe States
and there are a few things I don’t understand. First off,
what is this FICA, and SUI Y tax, and why are there
deductions both for Medicare and for my health insurance
plan?
Susan: OK, let’s start from the top of your pay stub. This
number here represents your gross pay.
Emily: Yes, that’s easy enough to understand.
Susan: Then here we have a series of deductions. First off
are the federal ones. FICA stands for Federal Insurance
Contribution Act, or something like that. It’s your federal
income tax. And then there’s Social Security and Medicare,
which are both federal programs to help you out after you
retire or if you were unable to work.
Emily: All right, I see. So the Medicare isn’t actually a
health insurance I can use now.
Susan: That’s right. Below the federal deductions are the
state deductions. There’s the state income tax, and then
this SUI SDItax you were asking about is paying into an
unemployment and disability fund that our state has set up,
but you can see it’s a pretty small quantity that they take.
Emily: Yeah, I don’t mind giving them a dollar fifty for
that. So there are two separate income taxes – one at a
state level and one at a federal level?
Susan: That’s right. Not all states have an income tax.
Some use higher property taxes or sales taxes instead.
Emily: I see. All right, well I think everything else I can
figure out on my own. The deductions for health insurance
and my 401(K) are pretty self-explanatory. Thanks for
your help, Susan.
Susan: No problem! All those deductions do add up, and
nobody’s net pay is as high as they’d like. I can understand
why you’d want some explanation.
Emily: Yeah, I guess it’s the same in the UK, I just never
paid much attention. See you later!