Unit 3 Test Review Consumer Math

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What is discretionary income?

Back

Discretionary income is the amount of income left after all fixed expenses and taxes have been paid. It can be used for non-essential items.

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What are payroll deductions?

Back

Payroll deductions are amounts withheld from an employee's gross pay, which can include taxes, insurance, and retirement contributions.

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CCSS.8.EE.A.4

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What is the FICA tax rate?

Back

The FICA tax rate is 7.65%, which includes Social Security and Medicare taxes.

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CCSS.6.RP.A.3B

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How do you calculate net pay?

Back

Net pay is calculated by subtracting all deductions (taxes, insurance, etc.) from gross pay.

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CCSS.6.RP.A.3D

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What are mandatory deductions?

Back

Mandatory deductions are required by law, such as federal income tax and FICA.

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What is a discretionary expense?

Back

A discretionary expense is a non-essential expense that can be adjusted or eliminated, such as entertainment or dining out.

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What is gross pay?

Back

Gross pay is the total amount earned by an employee before any deductions are made.

Tags

CCSS.6.RP.A.3B

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What is net income?

Back

Net income is the amount of money an employee takes home after all deductions have been made from gross pay.

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CCSS.6.RP.A.3D

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What is the difference between fixed and variable expenses?

Back

Fixed expenses remain constant each month (e.g., rent), while variable expenses can fluctuate (e.g., groceries).

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What is the purpose of FICA deductions?

Back

FICA deductions fund Social Security and Medicare programs.