SM1 Money Matters Review

Front

An employee works for a company that pays $18 per hour for up to 40 hours in a workweek. Any hours worked beyond 40 are paid at 1.5x the regular rate. This employee worked 50 hours last week and received $1,200 in total pay. What is the error in their overtime pay calculation?

Back

The employee was overpaid for the overtime hours worked.

Front

What does “Gross Pay” represent in this situation? You worked 30 hours at $15/hour; your paycheck shows “Gross Pay” of $450.

Back

The total amount you earned before any deductions are made.

Front

If an employee earns a gross wage of $4,500 per month and receives a 5% annual raise, what will their new monthly gross wage be after one year?

Back

$4,725

Front

Maria works at a bakery and earns $12 p/hour. Last week, she worked 48 hours. What is the total amount of her overtime pay?

Back

$144

Front

What does "gross income" refer to in financial terms?

Back

Income earned before taxes and any deductions are made.

Front

What is the 3rd step in the process to file a tax return? (1st - Group 4)

Back

Complete special IRS tax forms.

Front

According to federal law, what form must employers verify and keep on file to confirm the identity and employment eligibility of new hires?

Back

I-9

Front

How do employees notify their employer of changes to their tax withholding status?

Back

By completing a new W-4 form.

Front

What is the purpose of Box 2 on the W-2 form?

Back

To report Federal Income Tax Withheld.

Front

Which government agency is responsible for collecting taxes, processing tax returns, and enforcing tax laws in the United States?

Back

Internal Revenue Service