Payroll and Forms

Federal withholding an tax is an optional paycheck deduction.

• True
• False

Those who make more money pay a higher  percentage of their income on social security tax. 

• True
• False

Generally speaking, federal withholding represents the largest deduction taken from an employee’s gross income on a paycheck.

• True
• False

FICA tax provides benefits for retired workers and their dependents as well as for disabled workers and their dependents.

• True
• False

An elderly person who lives with her children after retirement could be considered a dependent.

• True
• False

The least secure standard way of paying employees is through use of a paycheck.

• True
• False

The two FICA deductions on a paycheck include Social Security and 

• Federal Income Tax
• medical insurance
• 401K plan
• Medicare

The amount of pay before all deductions refers to 

• net pay
• adjusted gross income
• gross pay
• exemption pay

Which of the following is NOT taxable income reported on the 1040 Form?

• Wages, tips

• Interest

• Child Support

• Unemployment compensation

If someone is paid bi-weekly, how many paychecks are received in a calendar year?

• 12
• 24
• 26
• 52