22-23 PrinB U6L3 Getting Paid

Which of the following accurately defines the term net pay?

• The amount of money in a paycheck after taxes and benefits are deducted

• The amount of money used to pay for taxes and benefits

• Hourly wage multiplied by the number of hours worked

• The amount of money refunded to workers by the IRS

What is the difference between gross and net pay?

• Net pay is the amount you earn; gross pay is the amount you receive after deductions.

• Gross pay is the amount you earn; net pay is the amount you receive after deductions.

• There is no difference between gross pay and net pay.

• Net pay is always more than gross pay.

Which of the following is an example of a service or program paid for by federal income taxes?

• Private health insurance

• Local public education

• The United States military

• Home repairs

Which of the following tells you what your gross and net income was for a particular pay period?

• Tax return

• Pay check

• W-4 form

• Pay stub

What is a tax return?

• A form sent to the IRS which reports on your annual income Correct! and deductions

• The amount of money returned to you after you pay your taxes

• The amount of money your employer pays in taxes

• The amount of money you make after paying taxes

How does a person's marital status affect the amount that is deducted from his or her paycheck for taxes?

• Deductions for married people are often more than those for single people.

• Deductions for married people are often less than those for single people.

• Marital status has no impact on taxe

• Divorced people pay more in taxes than married people.

Which of the following is an example of an employee benefit for which money is deducted from your paycheck?

• Clothing

• Auto insurance

• Health insurance

• Business travel

Bill is making $100 a week, and is saving for a $500 expense. How long will it take him to save up enough money if he saves

everything he earns?

• Almost a year

• Less than 5 weeks

• Exactly 5 weeks

• More than 5 weeks

Why is FICA important?

• It provides financial and medical security to seniors.

• It pays for unemployment insurance.

• It provides medical insurance for corporate employees

• It pays for college scholarships.

At his after school job, Tommy grossed $4,020 for the year. Based on his income level, the federal tax rate he'll need to pay is 10%.

For his state taxes, Tommy will need to pay 4.75%. FICA is 7.65%. What is Tommy's net pay for the year?

• $402.00

• $3,119.52

• $3,618.00

• $3,521.52