Budgeting

Which is an example of an income deduction?

• an unexpected salary cut

• wages lost due to illness

• vacation budget

  
  

• retirement savings

What effect would a tax increase have on income?

• It would reduce gross income

• It would not affect net income.

• It would increase net income.

• It would not affect gross income.

To change gross income, someone would need to

• save more per month.

• reduce deductions.

• earn more money.

• increase withholdings.

Pay before deductions and taxes.

• Gross Pay
• Net Pay
• Hourly Rate
• Commission

The amount of money you earn BEFORE payroll deductions is _____.

• Take home pay

• State Taxes

• Net Pay

• Gross Pay

What term is used to describe the income of an employee after all deductions are subtracted?

• Annual salary

• Gross pay

• Net pay

• Basic pay

Your salary after deductions is called

• gross income

• FDIC

• FICA

• Net Income

1. what a person earns after payroll taxes and other deductions are taken out; often referred to as take-home pay

• Gross Income

• Net Worth

• Net Income

• Positive Net Worth

Taxes get taken out of everyone's paycheck.

• True

• False

Which of the following is not a required deduction?

• Federal Income Tax
• Savings Deposits
• State tax
• Social security Tax