Financial Literacy Chapter 2 Test Review

The more allowances you have, the more money is taken out in taxes of your paycheck.

• True

• False

All deductions are required by law to be taken out of your paycheck. There are no optional ones allowed.

• True

• False

If you work flextime, there are core hours that all employees must work.

• True

• False

Employers must contribute matching amounts into each employee's Medicare and Social Security accounts.

• True

• False

Gross Pay is

• OT x hours worked

• rate x hours worked

• hours worked/rate

• rate + hours worked

In most cases, the amount of "take-home pay" an employee receives is

• equal to gross pay

• less than gross pay but more than net pay

• about 65-70 percent of gross pay

• is never enough

Which of the following benefits are employers required by law to provide?

• Child care

• Health insurance

• Paid vacation days

• Workers' compensation

If you are on salary

• you get double time for overtime

• no deductions will be taken from your check

• your gross pay is the same every pay period

• you are only paid once a month

What percent is social security tax?

• 6.2%

• 5.9%

• 1.45%

• 6.75%

A standard work week is how many hours?

• 35

• 45

• 50

• 40