Quiz 1 Net Pay

Net pay is gross pay PLUS total deductions

• true

• false

Federal Income tax is the amount paid by individuals to the government.

• true

• false

The amount of money deducted from worker's pay for federal income tax is called withholding tax.

• True

• False

Gross pay minus all deductions is called net pay, or take-home pay.

• True

• False

A deduction is an amount of money ADDED to gross pay.

• True

• False

Employee Expenses are amounts of money that you spend while doing something in the course of your work, which you will never reimbursed.

• True

• False

Employee benefits are defined as indirect, non-cash, or cash compensation paid to an employee above and beyond regular salary or wages.

• True

• False

Which of the following describes how to calculate net pay?

• Subtract the total deductions from the net pay.

• Add the total deductions to the gross pay.

• Subtract the total deductions from the gross pay.

• Subtract the total deductions from the take-home pay.

What is your taxable income?

• the amount you spend annually

• the amount of your property value

• the amount on which you pay tax

• the amount that you earn annually

Social security and medicare fall under 

• FICA 
• State 
• Federal 
• 401K