Chapter 3 Test Review

Earned Income is money given to you as gifts and donations

• True

• False

Minimum wage is 

•  

  set rate for all states

•  

  is the lowest wage an employer can pay by law

•  

  is made up of varying rates, but usually starts off at 9.75 per hour.

•  

  is paid to anyone that does not have a degree

What does the Internal Revenue Services use for your taxpayer identification number?

•  

  Your Drivers License number

•  

  Your date of birth

•  

  Your initials and date of birth

•   

  Your Social Security Number

What is the name for payment work that is expressed as an annual figure?

• Salary

•  

  Piece work

• Commission

• Hourly wages

You can double your money in a retirement fund?

• True

• False

Which one is not an example of an employee benefit?

•  

  Sick Leave

•  

  State taxes

•  

  Paid vacation time

•  

  Life or health insurance

If you are self employed you  will pay both employee share and employer share of FICA taxes.

• True

• False

Net pay is pay that is subtracted by payroll deductions. 

• True

• False

What hours are eligible workers typically paid overtime wages?

• Over 40hrs

• Over 30hrs

• Over 38hrs

• Over 20hrs

Shelia Stein earns $12 an hour and is covered by the Fair Labor Standards Act. Last week, Shelia worked a total of 42 hours. What is her gross pay?

• 516.00

• 500.00

• 480.00

• 504.00