Payroll Review

What is gross pay?

• The amount you earn after taxes and deductions.

• The total amount you earn before any deductions.

• The amount you receive after sales tax is applied.

• The total amount of taxes you owe at the end of the year.

How do you calculate the amount of sales tax on an item?

• Multiply the cost of the item by the sales tax rate.

• Divide the cost of the item by the sales tax rate.

• Subtract the sales tax rate from the cost of the item.

• Add the sales tax rate to the cost of the item.

What is the purpose of a W-4 form?

• To report your annual earnings to the IRS.

• To determine the amount of taxes to be withheld from your paycheck.

• To report the taxes you've paid throughout the year.

• To calculate your sales tax.

When is Tax Day in the United States?

• April 1

• April 15

• May 1

• July 4

What is a progressive tax?

• A tax that decreases in rate as the taxable amount increases.

• A tax that remains the same regardless of the taxable amount.

• A tax that increases in rate as the taxable amount increases.

• A tax applied only to sales transactions.

Which of the following is NOT a type of tax?

• Income tax

• Sales tax

• Happiness tax

• Property tax

How is income tax calculated?

• By multiplying your total income by a fixed percentage.

• By subtracting deductions from your gross pay.

• By applying a tax rate based on your income bracket to your taxable income.

• By adding a standard tax rate to all of your purchases throughout the year.

What is the main difference between a W-2 and a W-4 form?

• A W-2 form is used to apply for jobs, while a W-4 form is used for tax purposes.

• A W-2 form is for reporting annual wages and the amount of taxes withheld, while a W-4 form is used to determine the amount of taxes to withhold.

• A W-4 form is used to report tips, while a W-2 form is used to report salaries.

• There is no difference; they are used interchangeably.

What are deductions on a paycheck?

• Bonuses added to your gross pay.

• The total amount of money you earn.

• Amounts subtracted from your gross pay, including taxes and benefits.

• The final amount you receive after sales tax is applied.

What does the term "taxable income" refer to?

• The total amount of income before any deductions.

• The amount of income that is not subject to taxes.

• The amount of income left after all deductions have been applied.

• The total amount of sales tax you have paid throughout the year.