Payroll and Taxes Review

Gross income is also called “take-home pay.”

• True

• False

Net pay is gross income minus ____.

• payroll deductions

• interest earnings

• bonuses

• tax credits

Social Security is a program paid for by voluntary contributions from employees and employers.

• True

• False

Answer explanation

It is NOT voluntary - it is mandatory for all employees and companies to pay into this fund.

The Form W-2 determines ____.

• if you should itemize your deductions

• how much tax was withheld from your paycheck last year

• the amount of insurance premiums employers should withhold from your paycheck

• whether or not you are eligible for tax credits

The Form W-4 determines ____

• how much tax was withheld from your paycheck last year

• the amount of payroll deductions employers should withhold from your paycheck

• your eligibility for tax credits

• If you are entitled to a tax refund

When people refer to "Tax Day" they mean...

• January 1

• January 31

• April 15

• December 31

The 1040 form is used for what purpose?

• To determine how much taxes were withheld from your paycheck so you can file your taxes

• For your employer to use to decide how much money to withhold from your paycheck

• The report that goes to the government showing total income received and how much taxes you owe

• The form that calculates how much FICA you must pay

What is the amount on which taxes are calculated?

• net pay

• gross pay

• earned income

• taxable income

The _____ deduction is a fixed amount that may be deducted from adjusted gross income, which is set by law and will vary according to filing status.

• itemized

• 
  standard

• exempted

• taxable

What federal program pays for certain health-care expenses for older citizens and others with disabilities?

• medicaid

• medicare

• social security

• VITA program