1.2.5 Understanding Your Paycheck

Multiple Choice

Shaina is paid a salary of $37,882 on a biweekly pay schedule.

How much is the gross income each pay period? Round your answer to the nearest dollar.

• $1,578

• $3,157

• $1,457

• $729

Match

What are the different parts of a paycheck? Match each part name with the correct letter label.

• Gross Income

• Net Income

• Pay Rate

• Deductions

Part A

Part B

Part C

Part D

• Part A

• Part B

• Part C

• Part D

Multiple Choice

The gross income for a sales associate is $984.23.

What is the total amount of deductions that will be withheld if 12% of the gross goes toward deductions?

• $82.02

• $118.11

• $902.21

• $866.12

Multiple Choice

What is the benefit of using direct deposit?

• an automatic process

• fewer tax withholdings

• more frequent payments

• higher earnings

Multiple Choice

What is the difference between net income and gross income?

• Net income is the income when the employee is paid by the hour. Gross income is the income when the employee is salaried.

• 
  Gross income is the income when the employee is paid by the hour. Net income is the income when the employee is salaried.

• 
  Net income is the income before taxes and deductions are subtracted. Gross income is the income after taxes and deductions are subtracted.

• Gross income is the income before taxes and deductions are subtracted. Net income is the income after taxes and deductions are subtracted.

Open Ended

Use the information at the top of the paycheck below to find the net income and explain how you calculated your answer.

Labelling

An employee's paycheck shows a gross income of $902.50 where:

15% of the gross income was withheld for federal tax

3.07% was withheld for state income tax.

How much money was withheld for federal taxes?

Drag labels to their correct position on the image

$135.38

$133.24

$27.71

$23.45

Draw

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