Net Pay Practice

What is net pay?

• The amount of money an employee receives as a bonus

• The amount of money an employee earns before deductions

• The amount of money an employee takes home after deductions

• The amount of money an employee owes to the company

Which of the following is an example of a payroll tax?

• Federal Insurance Contributions Act (FICA) tax

• Property tax

• Sales tax

• Income tax

What is the purpose of payroll taxes?

• To reduce government spending

• To fund government programs and services

• To stimulate economic growth

• To provide income for individuals

Which of the following is a paycheck deduction?

• Income tax

• Social security tax

• Property tax

• Sales tax

How is net pay calculated?

• By adding all the deductions to the gross pay.

• By multiplying the gross pay with a random number.

• By dividing the gross pay by the number of deductions.

• By subtracting all the deductions from the gross pay.

What is the purpose of paycheck deductions?

• To cover various expenses such as taxes, insurance premiums, retirement contributions, and other benefits provided by the employer.

• To increase the employee's salary

• To support charitable organizations

• To fund the employer's personal expenses

What is the difference between gross pay and net pay?

• Gross pay is the total amount of money earned before any deductions, while net pay is the amount received after deductions.

• Gross pay is the amount received after taxes, while net pay is the amount received before taxes.

• Gross pay and net pay are the same thing.

• Gross pay is the amount received after deductions, while net pay is the total amount of money earned before any deductions.

A part-time receptionist earns $6.75 per hour.  If she works 30 hours, how much  will she earn?  

• $4.44
• $202.50
• $30
• $5,400

A gardener earns $15 per hour.  If he works 20 hours, how much will he earn?

• $300
• $5
• $240

Kyle worked 34 hours cutting lawns. His gross income was $329.12. What was his hourly wage?

• $9.68
• $12.54
• $15.67
• $10.00