Session Recap March 31, 2026

Session 7: Where Did My Paycheck Go?

W-2s, 1099s, deductions, and FAFSA implications. Students read a real pay stub and finally separate what they earn from what they keep.

Students working through worksheets during a session

AZ FTRS Spring 2026, Session 7, March 31, 2026.

The Gap Between Gross and Net

Session 7 started with a number students picked themselves: an hourly wage, times a full week, times four weeks. Then we handed out a real pay stub template and asked them to find that number on it. Most couldn't, because the number they'd calculated was gross pay, and the number that actually shows up in a bank account is net.

"I thought I did the math wrong. Then I realized the math was right, taxes are just that big a chunk."

W-2 vs. 1099, and Why It Matters Immediately

A W-2 employee has taxes withheld automatically. A 1099 contractor doesn't, and owes the full amount themselves, often as a surprise, at tax time. Students who've done gig work, tutoring, reselling, freelance design, left this session understanding why that "extra" cash isn't fully theirs yet.

Working through a worksheet A student working through the numbers

FAFSA Shares a Form With Taxes, on Purpose

The FAFSA pulls directly from federal tax information, which is exactly why this session pairs the two. Understanding a W-2 now means understanding, a few months from now, the numbers financial aid officers will actually be looking at when they calculate a student's aid package.

15-20%
is roughly how much of a paycheck disappears between gross and net pay for a typical entry-level earner, once federal, state, and payroll taxes are applied.

What's Next

Session 8 shifts to entrepreneurship: business registration, basic accounting, and the mindset shift from employee to owner. Whatever gets built starting here gets pitched live at Demo Day in Session 12.