W!se Review - Employment and Taxes

Which of the following statements is true about education and lifetime earnings?

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

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

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

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

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

• the less education

• the more education

• the lower the score on standardized tests

• the higher the score on standardized tests

Generally, the more education you receive, the ________________ will be.

• lower your lifetime earnings

• lower your electricity bills

• higher your food bills

• higher your lifetime earnings

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.

What is the difference between gross and net pay?

• Gross pay is after taxes are subtracted but net pay is before taxes are taken out.

• Gross pay is before taxes are subtracted but net pay is after taxes are taken out.

• Gross and net pay are basically the same things.

• Net pay is a salary and gross pay is from hourly wages.

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Which of the following is NOT a possible tax or deduction that could be withdrawn from your paycheck?

• Restaurant tax

• Federal income tax

• FICA

• Contributions to retirement savings

Which of the following is NOT a possible tax or deduction that could be withdrawn from your paycheck?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Which of the following is NOT a possible tax or deduction that could be withdrawn from your paycheck?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.