Income and Taxes

Earned income includes:

• Wages, Salaries, Tips, and other taxable employee pay
• Union Strike Benefits
• Long-term disability benefits received prior to retirement age
• All of these are correct

Taxes are deducted from all employees paychecks

• true
• false

What can happen if you don't file/pay taxes?

• You can get fined
• You can own back taxes
• You can go to prison
• All of the above

Money paid to the government from working for pay

• excise tax
• income tax
• sales tax
• payroll tax

Austin has just received his first paycheck. He worked 22 hours at his new job and is being paid $8.00 per hour. He calculated that his paycheck should be $176. His paycheck amount is almost 1/3 less than he expected. What is the most likely reason that Austin’s pay is less than he expected it to be?

• Austin calculated the hours he worked without deducting the hours he spent doing on_the_job training.
• Austin neglected to deduct the excise tax paid on the uniforms he purchased to wear at his job.
• Austin neglected to deduct the amount required to pay income and payroll taxes.
• Austin’s employer made a mistake calculating the number of hours Austin worked during his first pay period.

The government agency in charge of collecting tax.

• FICA
• IRS
• NBA
• SEC

Total amount of earnings made over a month before any deductions are____________.

• gross annual income
• net monthly income
• gross monthly income
• net annual income

What is the amount of the monthly income remaining after all deductions have been taken?

• gross annual income
• gross monthly income
• net annual income
• net monthly income

What is money received on a regular basis for work or through investments?

• salary
• paycheck
• wage
• income

The different ways an employer can issue pay checks are:

• Weekly
• Bi-Weekly
• Monthly
• All of these are correct