Calculating net income

This money is required by law to be withheld from your paycheck and is managed by the IRS (Internal Revenue Service).

• Personal Exemptions

• Social Security

• Group Health Insurance

• Federal Income Tax

Which will always be higher? Net pay or Gross pay.

• Net pay

• Gross pay

True or False: Net pay = Gross pay - Total Deductions

• 
  True

• 
  False

Patricia's gross pay is $65,800 a year and the State income tax rate is 3%. Patricia is married. How much is withheld for the year for state taxes?

• $1,845

• $184

• $1,854

• $185

What is a pay period?

• the number of days an employee works and is paid for a paycheck

• A period of time in which an employee is given a bonus

Annual salary is the amount of money you are paid..

• Bi-Weekly

• 
  Semi-Monthly

• 
  Monthly

• Yearly

If Amorelle made $384 in gross income and her deductions are $122, what is her net income?

• $262

• $506

• $406

• $266

1.     Ravi gross income is $66,100 a year. He claims $ 2,200 in deductions. Calculate his graduated state income tax using the table.

• $1,322

• $3,305

• $63,900

• $3,415

Sven Gross income is $ 31,250 a year. His state collects a flat tax of 3.5%. He claims $2,500 in deductions. Calculate the state Income tax he owes for the year.

• $1093.75

• $1006.25

• $87.50

• $8928.57

June earns a gross income of 77,300 a year. He claims $12,200 in deductions for his federal income taxes. Use the graduated table to calculate his federal income tax withholdings.

• $17,006

• $2,684

• $10,261.16

• $7,844.43