Paycheck Vocabulary Quiz

What is the definition of Hourly Wage?

• Employees are paid a set amount for each hour that they work

• Employees are paid the same amount each pay period, no matter how many hours they work

• An amount of money that is withheld from your paycheck

• Fees and charges imposed by governments to help pay for their programs and services

What is the definition of Salary?

• Employees are paid a set amount for each hour that they work

• Employees are paid the same amount each pay period, no matter how many hours they work

• An amount of money that is withheld from your paycheck

• Fees and charges imposed by governments to help pay for their programs and services

What is the definition of Deduction?

• Employees are paid a set amount for each hour that they work

• Employees are paid the same amount each pay period, no matter how many hours they work

• An amount of money that is withheld from your paycheck

• Fees and charges imposed by governments to help pay for their programs and services

What is the definition of Taxes?

• Employees are paid a set amount for each hour that they work

• Employees are paid the same amount each pay period, no matter how many hours they work

• An amount of money that is withheld from your paycheck

• Fees and charges imposed by governments to help pay for their programs and services

What is the purpose of Federal Income Tax?

• To fund the Military/National Defense, social programs, law enforcement, and national debt

• To fund Police/Fire services, Education and school maintenance, road maintenance, welfare services

• To provide healthcare and insurance benefits to retirees and people with limited resources/income

• To fund the social security benefits to Americans who are retired, sick, or too disabled to work

What is the purpose of State Income Tax?

• To fund the Military/National Defense, social programs, law enforcement, and national debt

• To fund Police/Fire services, Education and school maintenance, road maintenance, welfare services

• To provide healthcare and insurance benefits to retirees and people with limited resources/income

• To fund the social security benefits to Americans who are retired, sick, or too disabled to work

What is the purpose of FICA - Social Security tax?

• To fund the Military/National Defense, social programs, law enforcement, and national debt

• To fund Police/Fire services, Education and school maintenance, road maintenance, welfare services

• To provide healthcare and insurance benefits to retirees and people with limited resources/income

• To fund the social security benefits to Americans who are retired, sick, or too disabled to work

What is the purpose of FICA - Medicare tax?

• To fund the Military/National Defense, social programs, law enforcement, and national debt

• To fund Police/Fire services, Education and school maintenance, road maintenance, welfare services

• To provide healthcare and insurance benefits to retirees and people with limited resources/income

• To fund the social security benefits to Americans who are retired, sick, or too disabled to work

What is the formula to calculate Net Pay?

• Gross Pay - Deductions

• Gross Pay + Deductions

• Gross Pay * Deductions

• Gross Pay / Deductions

What is the definition of Gross Pay?

• The amount that an employee earns before taxes and other deductions are taken from their paycheck

• The amount of money you actually get to keep from your paycheck after taxes/deductions are subtracted

• An amount of money that is withheld from your paycheck

• Fees and charges imposed by governments to help pay for their programs and services