Lesson 1 of 4
Gross pay and net pay
Say you work 20 hours a week at a plate lunch spot for $16 an hour. Your gross pay, the number you earned, is $320 a week. Your net pay, the number that actually lands in your account, is smaller.
Three things come out first. Social Security and Medicare (together called FICA) take 7.65% of every dollar. Federal income tax takes a share once your yearly income passes the standard deduction. Hawaiʻi also has its own state income tax, one of the few states with a top rate as high as 11%, though a 2024 law is cutting taxes for working families every couple of years through 2031.
Many teens owe little or no income tax over a full year because they earn less than the standard deduction. Your employer may still withhold it. File a tax return in the spring and you can get that money back as a refund.