Chapter 2 Income, Benefits and Taxes

What is the federal minimum wage?

(a)  

Who is responsible for setting the federal minimum wage?

• President

• U.S. Department of Labor

• Internal Revenue Service

• Congress

Which statement is true about claiming EXEMPT on a Form W-4?

• No federal income, Social Security and Medicare taxes are deducted from a paycheck

• No federal and state income taxes are deducted from a paycheck

• No federal income tax is deducted from a paycheck

• No Social Security and Medicare taxes are deducted

The amount left after all expenses are deducted from the revenues of a business.

• Net Income

• Profit

• Budget Surplus

• Revenue

Benefits decrease the overall value a worker receives from a job.

• True

• False

Which statement is true about benefits?

• Some benefits help workers each financial goals.

• Workers are taxed on most benefits.

• Workers would have access to all benefits offered on their own.

• Group insurance costs are more expensive than individual policies.

Money that goes into a pension plan is from both the employee and employer.

• True

• False

What type of health spending account allows employees to set aside money for qualified medical expenses and the money is lost if not used at the end of the year?

• Health savings account

• Tax shelter annuity

• Flex 125 plan

• Health retirement account

Which would not be an example of unearned income?

• Interest

• Dividends

• Bonuses

• Gambling winnings

Government transfer payments made directly on a person's behalf or in a form other than money would be known as

• in-cash payments

• entitlement programs

• in-kind payments

• transfer payments