College Readiness Lesson 8.1

Which of the following is true?

• Gross pay is your take home pay, and net pay is the amount withheld from your overall pay.

• Gross pay is the amount you receive after overtime, and net pay is your standard pay amount.

• Gross pay is determined by your income minus federal withholding, and net pay is income minus Social Security and Medicare.

• Gross pay is the amount you are paid before deductions, and net pay is the amount you receive after deductions.

What is you gross annual salary if you are paid $10 per hour and work 25 hours per week.

• $14,150

• $11,250

• $12,500

• $13,000

Your gross annual salary is $18,850. What is your gross salary per pay period if you are paid biweekly?

• $754

• $725

• $362.50

• $412.25

Social Security tax is 6.2% of your gross pay each pay period. If your gross pay is $500, how much will be deducted for Social Security each pay period?

• $31

• $310

• $3.10

• $0.31

The Medicare tax is 1.45% of your gross pay. What is your Medicare deduction for the pay period if you made $375?

• $54.38

• $7.88

• $5.44

• $27.13

Your federal income tax withholding is determined by finding 15% of your taxable income - $29.90. Your taxable income is your gross income minus $150 for each allowance you claim. Your gross pay is $700 and you claimed one allowance. What is your taxable income?

• $550

• $700

• $650

• $600

Your federal income tax withholding is determined by finding 15% of your taxable income - $29.90. Your taxable income is your gross income minus $150 for each allowance you claim. Your gross pay is $700 and you claimed one allowance. What is the amount of tax withheld?

• $82.50

• $105

• $75.10

• $52.60

If your gross pay is $950 and your net pay is $750, what percent of your gross income do you bring home?

• 85%

• 79%

• 75%

• 83%

Your gross pay is $825. You are subject to the following deductions: federal withholding $78.85, Social Security $12.75, Medicare $6.38 and health insurance $82.50. What is your net pay?

• $727.02

• $723.37

• $644.52

• $729.75

Your hourly rate is $12.50 and you are paid time-and-a-half for any hours over 40. If you worked 43.5 hours this week, what will be your gross pay?

• $543.75

• $565.63

• $815.63

• $628.72