Payroll Taxes & Federal Income Taxes

Which of the following taxes provides for national programs such as national defense; veterans and foreign affairs; social programs; physical, human, and community development; law enforcement; and interest on the national debt?

• Federal Income Tax

• Medicare Tax

• Sales Tax

• Social Security Tax

Which of the following taxes is meant to provide medical benefits for certain individuals when they reach age 65?

• Federal Income Tax

• Medicare Tax

• Sales Tax

• Social Security Tax

Which of the following taxes is designed to provide benefits for retired workers and their dependents as well as for the disabled and their dependents?

• Federal Income Tax

• Medicare Tax

• Sales Tax

• Social Security Tax

Which of the following taxes is officially referred to as the Federal Insurance Contribution Act (FICA) Tax?

• Federal Income Tax

• Medicare Tax

• Sales Tax

• Social Security Tax

What is compensation received by an employee for services performed in addition to an employee’s usual compensation?

• Bonus

• Commission

• Salary

• Wages

What is compensation received by an employee for services performed, which is paid based on a percentage of sales made or a fixed amount per sale?

• Bonus

• Commission

• Salary

• Wages

What is compensation received by employees for services performed, which are computed by multiplying an hourly pay rate by the number of hours worked?

• Bonus

• Commission

• Salary

• Wages

What is compensation received by an employee for services performed that is a fixed sum paid for a specific period of time worked, such as weekly or monthly?

• Bonus

• Commission

• Salary

• Wages

What best describes money and goods received for services performed by food servers, baggage handlers, hairdressers, and others. This compensation goes beyond the stated amount of the bill and is given voluntarily?

• Bonus

• Commission

• Tip Income

• Wages

What is the charge for the use of borrowed money?

• Capital Gains

• Dividends

• Income

• Interest