Chapter 2: Net Pay Test Review Day 2

FICA is

• social security tax

• a deduction for people 65 or older

• not a tax

• not deducted from your paycheck

If Darien earns $120 net pay each paycheck and receives a paycheck each week, how much should he include as earnings in his yearly budget?

• $6,220
• $6,000
• $6,240
• $5,760

Marco has the following deductions listed.

Federal Income tax: $44

Social Security tax: $23

Medicare tax: $5

Health Insurance: $24

What is the total amount of his deductions?

• $39

• $67

• $91

• $96

Net pay is:

• the amount earned over a lifetime.
• the amount earned before deductions or taxes are taken out.
• the amount received after deductions and taxes have been taken out.
•  computed by multiplying the number of hours by the hourly rate of pay, then subtracting federal and state income taxes.

Gross pay is:

• the amount earned over a lifetime.
• the amount earned before deductions or taxes are taken out.
• the amount received after deductions and taxes have been taken out.
•  computed by multiplying the number of hours by the hourly rate of pay, then subtracting federal and state income taxes.

Ann worked 45 hours this week.  Her hourly rate is $10 per hour.  She earns time and a half for every hour over 40 that she works in a week.  What is her gross pay?

• $400
• $475
• $450
• $675

Amarise's salary has a net income of $235 per week. If she pays $30 in income tax and $15 in payroll tax, how could Juliette determine her gross income? Why?

• 235 – 30 – 15 = $190 Net income minus all deductions equals gross income.
• 235 + 15 = $250 Net income plus payroll tax deductions equals gross income.
• 235 + 30 = $265 Net income plus income tax deductions equals gross income.
• 235 + 30 + 15 = $280 Net income plus all deductions equals gross income.

Bobo makes $2,321 a week. He files married. What amount of federal tax is withheld?

FED: $174.70 + 22% in excess of $1745.00

• $192.33

• $201.51

• $301.42

Gross income minus deductions equal your net income.
If Amorelle made $384 in gross income and her deductions are $122, what is her net income?

• $506
• $406
• $262
• $266

What is the income tax owed on a taxable income of $139,622?

• $26,931

• $13,962

• $22,433