Unit 4, part 2

What is earned income?

• any money earned from working, includes wages and salaries

• income that is earned with very little effort on your part, such as having a rental property

• income earned from investment profits, such as selling stocks

What is passive income?

• any money earned from working, includes wages and salaries

• income that is earned with very little effort on your part, such as having a rental property

• income earned from investment profits, such as selling stocks

What is portfolio income?

• any money earned from working, includes wages and salaries

• income that is earned with very little effort on your part, such as having a rental property

• income earned from investment profits, such as selling stocks

What form tells your employer how much money to take out of your paycheck to go towards paying your income taxes?

• W-2

• W-4

• W-6

What is GROSS INCOME

• money earned BEFORE payroll taxes and other deductions are taken out

• money earned AFTER payroll taxes and other deductions are taken out

What is NET INCOME

• money earned BEFORE payroll taxes and other deductions are taken out

• money earned AFTER payroll taxes and other deductions are taken out

How many pay periods per year are there for someone with a weekly pay period?

• 52

• 26

• 24

• 12

How many pay periods per year are there for someone with a biweekly pay period?

• 52

• 26

• 24

• 12

How many pay periods per year are there for someone with a semi-monthly pay period?

• 52

• 26

• 24

• 12

How many pay periods per year are there for someone with a monthly pay period?

• 52

• 26

• 24

• 12