Money Matters Ch 2 Review

How much is Self employed individuals required to pay in social security taxes?

• 12.4%

• 6.2%

• 1.45%

• None

You work a job that pays you an hourly wage of $15 per hour. What are your gross wages if you work 35 hours in one week.

• None

• $525

• $350

• $600

Since you went to work for the furniture company, you have a salary of $300 per week plus a commission of 7%. This week you sold one customer $3,200 bedroom set and another customer a living room set for $5,900. What were your gross sales for the month of April?

• $2,364

• $864

• $1,837

• $2,000

There are 40 hours in a standard work week.

• True

• False

net pay is the amount you take home after taxes and other deductions have been subtracted.

• False

• True

For an hourly worker, gross pay is found by multiplying the number of hours worked by the hourly rate of pay.

• True

• False

Social Security and Medicare (FICA) are what type of deduction/withholding from your gross pay?

• mandatory/required deduction

• Only required if you earn over $20,000 per year

• Voluntary/optional deduction

• what is that??

Corporation's profits distributed to stockholders is called:

• interest

• tips

• dividends

• commission

Social Security benefits are considered unearned income.

• True

• False

The form used to report a worker's earned income and taxes withheld during a calendar year is called a ______. This form must be received by Jan 31.

• Form 1040

• Form W-4

• Form I-9

• Form W-2