Personal Finance Exam

The FICA tax is used to fund: a) highways, national parks and national defense. b) state highways, state parks, state troopers and public education. c) street lights, fire and police protection and public education. d) Social Security and Medicare.

• a
• b
• c
• d

Gross pay is. a) the amount earned over a lifetime. b) the amount earned before deductions or taxes are taken out. c) the amount received after deductions and taxes have been taken out. d) computed by multiplying the number of hours by the hourly rate of pay, then subtracting federal and state income taxes.

• a
• b
• c
• d

A W-4 Form is: a) used by employers to determine the amount of income tax to withhold from employees' earnings. b) the form taxpayers must fill out if they paid more income tax than necessary and want a refund. c) is a form employers must provide to employees shortly after year-end to report annual income and withholding for the employee's tax return. d) a printed statement of the amount that an employee is paid.

• a
• b
• c
• d

What is a pay period?

• time worked beyond an employee’s regular hours

• the number of days an employee works and is paid for each paycheck

• the day a person is paid

• a fixed amount of money an employee is paid to do a job

What is gross pay?

• a pay period of every 2-weeks with 26 pay periods per year

• the amount of money earned before any deductions are subtracted

• the amount of money left in a worker’s paycheck after deductions are taken out

• the amount of money subtracted from a worker’s pay

Which of these is an optional/voluntary deduction?

• healthcare insurance

• state income tax

• Social Security tax

• Medicare tax

Multiplying a worker’s hourly wage amount and hours worked per pay period equals?

• pay period

• salary

• gross pay

• net pay

A fixed amount of money per year paid to an employee to do a job is known as a _____?

• hourly rate

• deduction

• overtime pay

• salary

Which of these is the amount of money that remains after taxes have been deducted that a person can save or spend as he or she wishes?

• semi-monthly paycheck

• gross pay

• residents

• disposable income

What is netpay?

• a pay period of every 2-weeks with 26 pay periods per year

• the amount of money earned before any deductions are subtracted

• the amount of money left in a worker’s paycheck after deductions are taken out

• the amount of money subtracted from a worker’s pay