Paycheck Vocabulary

What is gross income?

• Total income before deductions or taxes

• Income after deductions and taxes

• Net income

• Disposable income

What is net income?

• The total amount of money a company earns after adding all expenses and taxes to its revenue.

• The total amount of money a company earns after deducting only some expenses and taxes from its revenue.

• The total amount of money a company earns after deducting all expenses and taxes from its revenue.

• The total amount of money a company earns before deducting all expenses and taxes from its revenue.

What are deductions in a paycheck?

• Amounts added to an employee's net pay

• Additional income added to an employee's gross pay

• Amounts subtracted from an employee's net pay

• Amounts subtracted from an employee's gross pay

What are payroll taxes?

• Taxes deducted from an employer's paycheck to fund government programs.

• Taxes deducted from an employee's paycheck to fund private programs.

• Taxes deducted from an employee's paycheck to fund personal expenses.

• Taxes deducted from an employee's paycheck to fund government programs.

What is overtime pay?

• Extra money for working extra hours.

• Additional compensation for working more than regular hours.

• Compensation for working on weekends or holidays.

• Additional benefits for working overtime.

Which of the following is included in gross income? a) Bonuses b) Deductions c) Overtime pay d) Payroll taxes

• c) Vacation pay

• b) Incentives

• d) Social security benefits

• a) Bonuses

Which of the following is subtracted from gross income to calculate net income? a) Bonuses b) Deductions c) Overtime pay d) Payroll taxes

• b) Deductions

• d) Payroll taxes

• c) Overtime pay

• a) Bonuses

Which of the following is not a deduction in a paycheck? a) Income tax b) Social Security tax c) Health insurance d) Overtime pay

• c

• a

• d

• b

Which of the following is a type of payroll tax? a) Sales tax b) Property tax c) Income tax d) Social Security tax

• a) Sales tax

• d) Social Security tax

• c) Income tax

• b) Property tax

When is overtime pay applicable? a) When working on weekends b) When working more than 40 hours in a week c) When working on public holidays d) When working part-time

• c

• b

• a

• d