Financial LIteracy Review S2

How do you calculate your salary per pay period?

• Divide annual salary by the number of pay periods per year

• Divide number of pay periods per year by the annual salary

• Multiply the annual salary by the number of pay periods per year

• Multiply the salary per pay period by the number of pay periods per year

If a person earns $30,000 a year, how much is their monthly salary?

Generally, the more education you receive, the higher your lifetime earnings will be.

• True

• False

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.

There is no relationship between the level of education received and lifetime earnings.

• True

• False

The amount of money you're paid, after all taxes and deductions are taken out of your paycheck is called ________.

• Gross pay

• Net pay

• Total pay

• Year-to-date pay

Which of the following is a possible tax or deduction that they may show up on your paycheck?

• Federal income tax

• Contributions to retirement savings

• FICA

• All of the above

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.

When you start a new job, you fill out a W-4 form to _________.

• determine how much your gross pay should be.

• file your tax return.

• avoid paying income taxes on your paychecks.

• to determine how much federal income tax your employer should withhold from your paychecks.