Act 2 - Paychecks and Payroll

Dropdown

The employee and employer pay ​

Select answer

taxes. The employer is responsible for ​

Select answer

taxes.​

Select answer

do not get taxes taken out of their paychecks, they must pay at the time of filing income taxes.

Multiple Choice

Which of the following is considered a voluntary deduction from an employee's paycheck?

• Retirement contributions

• Social Security tax

• Medicare tax

• Federal income tax

Multiple Choice

Which of the following best describes 'Net Pay'?

• The total amount earned before deductions

• The amount taken out for taxes only

• The take home pay after all deductions

• The total number of hours worked

Multiple Choice

Based on the paycheck example, what is the difference between 'Current' and 'YTD' amounts?

• Current is for the entire year, YTD is for one pay period

• Current is for one pay period, YTD is the total from Jan 1st to that day

• Current is before deductions, YTD is after deductions

• Current is the total salary, YTD is the hourly wage

Multiple Select

Which of the following are characteristics of an independent contractor? (2 correct)

• Set hours and specific duties

• Income taxes are taken out of paycheck

• Runs their own business and controls their work

• Must pay taxes at filing time

Match

Match the form to the description

• Employee fills out - states withholdings

• Employee receives every year - inc. & deductions

• Independent contract fill out - states income

• Independent Contractor - fills out - states personal information

W4

W2

1099

W9

• W4

• W2

• 1099

• W9

Multiple Choice

What is the main difference between voluntary and involuntary payroll deductions?

• Voluntary deductions are chosen by the employee, while involuntary deductions are required by law.

• Voluntary deductions are required by law, while involuntary deductions are chosen by the employee.

• Voluntary deductions are only for health insurance, while involuntary deductions are only for taxes.

• Voluntary deductions are paid by the employer, while involuntary deductions are paid by the employee.

Your Turn!