Unit 1 Review

What is variable pay?

• Salaries or wages that do not vary based on performance

• Compensation that fluctuates based on performance, productivity, or skill level

• Fixed monthly salary

• Hourly wages that vary based on hours worked

Which of the following is an example of variable pay?

• Administrative roles

• Hourly wages

• Commissions

• Fixed monthly salary

In commission-based jobs, what determines the earnings of the professional?

• Number of hours worked

• Sales performance

• Level of education

• Years of experience

This form determines the amount of federal income tax withheld from an employee

• W-2

• 1099

• 1040

• W-4

Which of these would be a non-monetary benefit?

• Salary

• Commission

• Wages

• Dental Insurance

T/F it is important to fill out the W-4 accurately to have the correct amount of income tax withheld

• True

• False

____________ is the highest tax rate you pay

• Marginal Tax rate

• Effective Tax rate

T/F if I am at the top of a tax bracket, I do NOT want to get a raise because that would put me in a higher bracket.

• True

• False

Which is the amount of money you take home after payroll deductions?

• Gross income

• Net Income

• Salary

• Pay rate

Continuing education is worth it from a financial perspective if:

• Your earnings potential is higher than the cost of your education

• You calculate earnings after working for one year after college

• You attend a public university and do not take out loans

• You use federal student loans to attend a private college