Prin Bus CH 17 - Personal Finance

Gross Income is

• the same as net income

• the amount you take home in a paycheck

• wages or salary minus bonuses

• wages or salary before payroll deductions

The term used to describe all the subtractions from your gross income

• federal insurance contributions

• payroll deductions

• federal income taxes

• employee benefits

Net pay is

• also called gross income

• your gross income minus payroll deductions

• wages or salary before payroll deductions

• the dollar amount you are told when hired for a job

Taxes paid by the employee and employer that are used to finance the federal Social Security and Medicare programs.

• Federal withholding tax

• State withholding tax

• FICA taxes

• Employee benefits

State and federal ____________________ are withheld from the employee's gross pay and are forwarded to the government.

• gross pay

• net pay

• benefits

• income taxes

Texas has a state income tax

• True

• False

Net pay is calculated by

• Net Pay - Gross Pay = Net Pay

• Gross Pay + Benefits = Net Pay

• Regular Pay + OT Pay - deductions = Net Pay

• Regular Pay + FICA Tax - OT Pay = Net Pay

Expense that can go up and down during the budget period.

• Fixed Expense

• Earned Income

• Tax Deduction

• Variable Expense

Income received from employment or from self-employment

• Fixed Expense

• Earned Income

• Tax Deduction

• Variable Expense

Difference between a budgeted dollar amount and the actual dollar amount.

• Fixed Expense

• Variance or Remainder

• Tax Deduction

• Variable Expense