W!se Review - Income and Employment

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

• True

• False

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

• True

• False

For most careers, which degree will most likely result in the highest lifetime earnings?

• High school degree

• Associate's degree

• Licensure or certification

• Bachelor's Degree

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.

Net pay is NOT ________.

• The money that you take home on your paycheck.

• Your gross pay plus any bonuses.

• less than gross pay.

• 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, 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

Which of the following is NOT a possible tax or deduction that could come out of your paycheck?

• FICA

• Overtime pay

• Federal income tax

• Contributions to retirement savings

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.