001Paycheck Vocabulary

What is gross income?

• Income after deductions and taxes

• Net income

• Disposable income

• Total income before deductions or taxes

What is net income?

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

What are deductions in a paycheck?

• Amounts added to an employee's net pay

• Amounts subtracted from an employee's gross pay

• Amounts subtracted from an employee's net pay

• Additional income added to an employee's gross pay

What is tax withholding?

• The amount of money that an employer withholds from an employee's paycheck to pay taxes.

• The amount of money that an employer withholds from an employee's paycheck to pay for retirement savings.

• The amount of money that an employee withholds from their paycheck to pay taxes.

• The amount of money that an employer withholds from an employee's paycheck to pay for insurance.

What are payroll taxes?

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

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

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

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

Which of the following is included in gross income? a) Taxes b) Deductions c) Bonuses d) Net income

• a

• b

• d

• c

Which of the following is subtracted from gross income to calculate net income? a) Taxes b) Deductions c) Bonuses d) Gross income

• b) Deductions

• d) Gross income

• c) Bonuses

• a) Taxes

Which of the following is an example of a deduction in a paycheck? a) Social Security tax b) Overtime pay c) Vacation pay d) Gross income

• a) Social Security tax

• d) Gross income

• c) Vacation pay

• b) Overtime pay

What is the purpose of tax withholding in a paycheck?

• To provide additional income for the employer.

• To discourage employees from working overtime.

• To ensure correct tax deductions and payment to the government.

• To increase the amount of taxes paid by the employee.

Which of the following is an example of a payroll tax? a) Federal income tax b) Sales tax c) Property tax d) Net income

• a) Federal income tax

• d) Net income

• c) Property tax

• b) Sales tax