Chapter 1 & 2 PERSONAL FINANCE

Gross Pay is defined as

• Total pay earned during a pay period minus deductions.

• Total amount paid to an employee each pay period, including regular pay, overtime pay, and other taxable earnings (such as reimbursements)

• Total Pay earned during a pay period not including overtime pay.

• none of these

Net pay is defined as

• total pay earned during a pay period.

• total pay earned during a pay period plus deductions.

• total pay earned during a pay period minus all deductions.

• none of these

FICA taxes are

• U.S. federal payroll taxes imposed on both employees and employers to fund Social Security and Medicare

• U.S. federal payroll taxes imposed on employees only to fund Social Security and Medicare.

• U.S. federal payroll taxes imposed on both employees and employers to fund Social Security.

• U.S. federal payroll taxes imposed on employers only to fund Social Security and Medicare

Which of the following is not an optional deduction from your pay?

• health insurance

• life insurance

• social security tax

• savings plan

If Larry’s work pays their employees every other Tuesday, how many pay periods is there in one year?

• 52

• 26

• 24

• 12

Pam earns $75,000 annually, what is her gross pay per paycheck, if she is paid twice a month?

• $3,100.15

• $3,125.00

• $3,152.00

• $3,199.92

All of the following are examples of hard skills except

• knowing how to use Microsoft Excel

• installing an air conditioner

• leading a team

• operating a forklift

All of the following are soft skills except

• knowing how to give a person a firm handshake

• preparing a PowerPoint presentation

• speaking with confidence to a potential client

• dressing appropriately for a job interview

On-the-job training is an example of

• formal education

• self-education

• natural education

• informal education

Interest and Dividends are examples of unearned income

• True

• False