Business Math Chapter 2

What are paycheck deductions?

• Amounts of money taken out of an employee's paycheck to cover expenses or obligations.

• Amounts of money given to an employee as a gift.

• Amounts of money taken out of an employer's bank account to cover expenses.

• Amounts of money added to an employee's paycheck as a bonus.

Which of the following is not typically deducted from your paycheck?

• Federal income tax

• State income tax

• Medicare tax

• Entertainment expenses

What is the purpose of paycheck deductions?

• The purpose of paycheck deductions is to provide extra income for employees.

• The purpose of paycheck deductions is to fund company parties and events.

• The purpose of paycheck deductions is to pay for employee bonuses and incentives.

• The purpose of paycheck deductions is to cover expenses or obligations such as taxes, insurance premiums, retirement contributions, and other benefits.

Which of these is considered an optional deduction from an employee's paycheck?

• Medicare tax

• State income tax

• Life insurance premium

• Unemployment tax

What is the purpose of Social Security tax?

• To support education initiatives

• To fund healthcare programs

• To provide retirement benefits to individuals

• To fund the Social Security program.

Which of the following is an example of an involuntary paycheck deduction?

• state income tax

• 401(k) contribution

• overtime pay

• federal income tax

What is the purpose of federal income tax?

• To provide financial support to individuals and families.

• To fund government programs and services.

• To stimulate economic growth and development.

• To reduce the national debt and deficit.

Which of these deductions is not usually associated with healthcare expenses on a paycheck?

• Health insurance premium

• Flexible spending account

• Unemployment tax

• Health savings account

What is the purpose of Medicare tax?

• The purpose of Medicare tax is to fund the Medicare program.

• The purpose of Medicare tax is to fund military operations.

• The purpose of Medicare tax is to provide healthcare benefits to low-income individuals.

• The purpose of Medicare tax is to fund Social Security.

Which of the following is an example of a paycheck deduction related to retirement?

• Medicare tax

• Social Security tax

• 401(k) contribution

• Income tax