Chapter 2 BM Test

When exemptions are taken from the annual salary that amount of money is known as?

• Gross Pay

• Taxable Wages

• Federal Income Tax

• State Income Tax

When calculating graduated income tax, the tax rate differs in every state.

• True

• False

Your taxable wages depend on exemptions or withholding allowances?

• True

• False

It is optional to pay Federal income taxes?

• True

• False

The tax rate all around the world is the same?

• True

• False

The amount of Federal income tax is deducted from the annual salary?

• True

• False

 The amount of money withheld from your paycheck depends on which of the following?

• Income

• Martial Status

• Withholding Allowances

• All of the above

The Federal Insurance Contributions Act (FICA) requires employers to deduct a percent of income as taxes for?

• Social Security (Retirement) 6.2% and Medicare (Medical Insurance) 1.45%

• Social Security (Retirement) 1.45% and Medicare (Medical Insurance) 6.2%

• Social Security (Medical Insurance) 6.2% and Medicare (Retirement) 1.45%

• Social Security (Medical Insurance) 1.45% and Medicare (Retirement) 6.2%

Group Insurance costs less to purchase than individual insurance.

• True

• False

Name one of the States that do not have a State Income Tax.