Financial Literacy Quiz #1 ( Lessons 1&2)

What is net pay?

• The amount of pay earned for the total number of hours worked.

• The amount of money you're paid after all taxes and deductions are taken out of your paycheck.

• The amount of money you're paid before all taxes and deductions are taken out of your paycheck.

• Your gross pay plus any bonuses.

Which of the following is NOT a possible tax or deduction that could show up on your paycheck?

• State income tax

• Contributions to retirement savings

• FICA

• Sales tax

What is the purpose of the W-4 form?

• To file your tax return.

• To determine how much your gross pay should be.

• To inform your employer of how much federal income tax to withhold from your paychecks.

• To avoid paying income taxes on your paychecks.

Your employer sends you a______ form that tells you how much you've made and how much you've paid in taxes in the last year.

• 1040

• W-2

• W-4

• W-9

What does the W-2 form tell you?

• How much you've earned and how much taxes you've paid in the last year.

• When to file your tax return.

• How much federal income tax your employer will withhold from your paycheck.

• How often your employer will be paying you.

What do taxes pay for?

• Schools, government departments, roads, and emergency services

• Privately-owned businesses

• Operation of financial institutions

The gig economy offers_____ _.

• the total availability of employment and labor in the economy.

• Flexible, short-term, and independent jobs.

• An economic system in which assets or services are shared between individuals.

• The migration of workers to high-tech jobs.

What do you need in order to fill out your 1040?

• Your W-2

• Your employer benefits documentation

• Your credit card statement

• Your job offer

How much you're being paid is the only thing you need to consider when considering a job offer

• True

• False

Which of the following is NOT considered part of your benefits package available from your employer?

• Free technology equipment

• Disability Insurance

• Paid time off

• Healthcare insurance