Practice for Paycheck Net Pay Test

What is gross pay?

• Total amount earned before deductions or taxes

• Total amount earned after retirement contributions

• Total amount earned per hour

• Total amount earned after deductions or taxes

How do you calculate net pay?

• Subtract deductions from gross pay.

• Divide deductions by gross pay.

• Multiply deductions by gross pay.

• Add deductions to gross pay.

What is social security deduction?

• A deduction from an employee's paycheck to fund retirement savings.

• A payroll tax deducted from an employee's paycheck to fund the Social Security program.

• A deduction from an employee's paycheck to fund unemployment benefits.

• A tax deducted from an employee's paycheck to fund healthcare programs.

What is health insurance deduction?

• A tax credit for purchasing health insurance

• A penalty for not having health insurance

• A deduction that subtracts the cost of their health insurance premiums from their gross pay.

• A discount on health insurance premiums

What is the formula to calculate gross pay?

• Gross Pay = Hours Worked + Hourly Rate

• Gross Pay = Hours Worked * Hourly Rate

• Gross Pay = Hours Worked / Hourly Rate

• Gross Pay = Hours Worked - Hourly Rate

What are some common types of deductions from a paycheck?

• IRA retirement

• income taxes, FICA, medical insurance premiums, 401K retirement plans

• medical expenses

• charitable deductions

What is the formula to calculate net pay?

• Gross pay - Deductions

• Gross pay / Deductions

• Gross pay x Deductions

• Gross pay + Deductions

Employees who are paid biweekly receive ______________ paychecks per year.

• 12
• 24
• 26
• 52

FICA is comprised of two different parts… what are they?

• Social security and federal tax
• Social security and state tax
• Medicare and social security
• Medicare and federal tax

Determines the amount of federal withholding tax from an employee's paycheck

• Taxation Form
• I9 Form
• W4 Form
• Deduction Form