PFIN 3.07

Bob is working for a bank. He earns $8.00 an hour, works 40 hours a week, and gets paid every 2 weeks.Every pay period he pays $63.08 into federal withholdings tax, $33.21 into state withholdings tax, and $42.05 into FICA (Social Security Tax).  What is Bob’s NET pay on his paycheck?

• $501.66
• $363.22
• $576.92
• $640.00

Bob is working for a bank. He earns $8.00 an hour, works 40 hours a week, and gets paid every 2 weeks.Every pay period he pays $63.08 into federal withholdings tax, $33.21 into state withholdings tax, and $42.05 into FICA (Social Security Tax).  What is Bob’s GROSS pay on his paycheck?

• $501.66
• $576.92
• $320.00
• $640.00

Ally learned in her Personal Finance class that some paycheck deductions are required and others are optional. She is checking over her paystub and sees several deductions. Which of the following would be TRUE?

• Federal Income Tax, State Income Tax, Social Security and Medicare deductions are all required deductions.
• Social Security, Medicare, Life Insurance, and Health Insurance are all required deductions.
• Federal Income Tax, State Income Tax, Workers Compensations, and Life Insurance are all required deductions.
• Social Security, Medicare, Federal Income Tax, and Workers Compensation are all required deductions.

The regular schedule that employers pay their employees is called the __________.

• worker's compensation
• pay period
• employee benefits
• employer contributions

Hunter has been offered a job by a local mechanic who has offered to pay him in cash rather than by paper paycheck, direct deposit, or payroll card. Hunter is excited that the amount of money he will take home each week will be larger since his employer won’t be deducting any taxes from it. His employer wants to hire him for the 10 weeks of his summer break and expects to pay him $300 per week. Which statement below is most likely to be true?

• Hunter will not need to pay taxes on the income from his summer job because the totalamount he will earn is under the amount required for federal tax deductions.
• Hunter will need to pay his federal and state taxes on his own since his employer is notpaying these required taxes for him.
• It is illegal for Hunter to receive payment for his work in cash. He could be fined for doing so.
• Hunter’s employer is doing him a favor by offering to pay him in cash. Hunter willpotentially earn more by this method of payment.

The most secure method for an employer to pay employees is to use:

• direct deposit
• payroll card
• printed paycheck
• in-store credit

Shannon is reviewing her pay stub to determine how much money she earned before her deductions were subtracted. Which column should she check to find this amount?

• net income
• employer contributions
• hours and earnings
• gross income

Gross income – deductions = _______________

• Social Security
• net income
• Medicare
• employee benefits

Jamie has elected to be paid by direct deposit at her new job. This means _____.

• She will receive her paycheck mailed directly to her each pay period.
• She will receive her pay automatically loaded onto her payroll card at the end of each pay period.
• She will receive her pay directly into her checking account at her depository institution foreach pay period.
• She will receive her paycheck delivered directly to her at her place of employment at theend of each pay period.