Chapter 2 Income, Benefits, and Taxes

How many hours are in a standard work week?

• 50

• 30

• 40

• 42

Vacation, sick leave, personal leave are examples of what type of pay?

• earned income

• unemployment

• hourly pay

• Pay without work

Following are examples of earned income except

• Tips

• interest

• commissions

• salary

Use of a fitness center, employee discounts, and tuition reimbursement are examples of

• pay without work

• profit sharing

• When a company offers "extras" called perks

Interest, and dividends are examples of

• pay without work

• unearned income

• earned income

• unemployment benefits

Self-employed individuals are required to pay how much in social security taxes

• 12.4%

• 6.2%

• 1.45%

• They do not have to pay any social security tax

Gross pay is...

• Same as disposable income

• total wages less taxes and other deductions

• also called take home pay

• Total wages or salary earned for a pay period

FICA -Federal Insurance Contribution Act

• Government sponsored health insurance

• Medicare

• Social security and medicare tax combined

• A type of unemployment insurance

Most benefits employees receive are not taxed

• True

• False

Income received from sources other than working is called

• disposable income

• unearned income

• gross income

• net income