Understanding Your Paycheck Review

If an employee works 40 hours a week at a rate of $15 per hour, what is their gross pay for the week?

• $450

• $600

• $750

• $1200

Which of the following is NOT a common deduction from a paycheck?

• Federal income tax

• State income tax

• Health insurance premium

• Gross pay

Net pay is calculated by subtracting what from your gross pay?

• Bonuses

• Deductions

• Overtime

• Hours worked

If an employee earns $20 per hour and works 50 hours in a week, with overtime pay being 1.5 times the regular rate for hours worked over 40, what is their total pay for the week?

• $1000

• $1100

• $1200

• $1300

What form is used by employees to determine the amount of taxes to be withheld from their paycheck?

• W-2

• W-4

• 1040

• 1099

What form do employers provide to their employees, summarizing the employee's income and taxes withheld for the year?

• W-2

• W-4

• 1040

• 1099

• $600

• $1000

• $400

• $800

Which of the following would be considered a deduction from a paycheck?

• Overtime pay

• Social Security tax

• Gross pay

• Net pay

If an employee's hourly rate is $25 and they work 45 hours in a week, how much will they earn in overtime pay?

• $187.50

• $375

• $112.50

• $225

Which of the following statements is true regarding the W-4 form?

• It is used to report an employee's annual wages and taxes withheld.

• It determines the federal income tax withholding rate.

• It must be filed with the IRS by April 15th each year.

• It is given by the employer to the employee at the end of the year.