First Day of School CFM 1

The total amount you earn (before tax) is called ____________ pay.

• Benefit

• Net

• Gross

• Deductible

Answer explanation

Gross Pay is before the withhold taxes and deductions. Net Pay is what you have to actually spend.

Joe has completed a job interview.  The next step he should take toward getting the job is to

• relax, and wait for a response

• write the interviewer a follow-up letter

• call the interviewer to confirm his interest

• contact other workers at the company

Answer explanation

After a career interview, if you want the job, write a follow-up letter (Thank-You Note) to show that you are interested in the job.

Which is an example of a fringe benefit?

• salary or wages

• income tax

• union dues

• paid vacation

Answer explanation

A benefit is an Extra that companies give to keep and attract good workers. Such as a company car, cell phone, daycare, paid sick days.

Trevor wishes to increase the amount of income tax that is withheld weekly from his salary.  Which form should he complete?

• W-4

• 1040

• W-2

• 1099

Answer explanation

A W-4 Form is a form that you fill out that will tell your employer how much to withhold each paycheck for income taxes.

Which type of protection provides payment to employees who are injured on the job?

• Medicare

• Workers' Compensation

• Medicaid

• Blue Cross

Answer explanation

If you get hurt on the job and can't go into work, we have an insurance plan that pays a percentage of your salary until you are healthy to get back to work.

Which form provides employees with information on their yearly wages earned and the amount of Federal taxes paid for the year?

• 1040

• W-2

• 1099

• W-4

Answer explanation

Your employer will send a W-2 Form to you by January 31st. It lists your gross pay, your Federal, State Income Tax and Social Security Tax that was withheld. It is a year end summary.

An outstanding check is one that. . .

• A check that has not yet been paid by the bank.

• Cannot be covered by the funds in an account

• Promises to repay the amount of a loan at a future date

• Is used to make money to earn interest

Answer explanation

An Outstanding Check is a check that was written but the bank has not cashed it yet. So the money is still in your account.

A form of business ownership that sells stock to its prospective owners is a

• Proprietorship

• Partnership

• Corporation

• Franchise

Answer explanation

Corporations sell or issue stock

Performance reviews enable workers to

• Join labor unions

• Receive an evaluation of their work

• Apply for workers’ compensation

• Take part in contract negotiations

Answer explanation

A Performance Review allows your boss to communicate to you how you are doing on your job. It is a good way to receive feedback.

On your paycheck stub, the box labeled FICA shows taxes you have paid to support

• Social Security

• Internal Revenue Service

• Fire and Police Protection

• Education and Transportation

Answer explanation

The Federal Insurance Contribution Act (FICA), provides for old age, survivors and disability.