Unit 1 Vocab

What are income taxes?

• Money the government collects from people based on how much they earned or received during the year

• Money people pay to private companies for services

• Money collected by charities from donations

• Money given to people by the government as a subsidy

What is a sales tax based on?

• The cost of goods purchased

• The income of individuals

• The number of goods sold

• The type of goods purchased

Do all states have the same sales tax rate?

• Yes, all states have the same sales tax rate

• No, every state has a different sales tax rate

• Only some states have different sales tax rates

• Sales tax rates are the same for neighboring states

What are payroll taxes paid on?

• Interest earned on savings

• Wages and salaries earned by employees

• Profits from investments

• Property owned by individuals

Which two federal programs are most commonly supported by payroll taxes?

• Unemployment Insurance and Medicaid

• Social Security and Medicare

• Food Stamps and Housing Assistance

• Education Grants and Transportation

What is Gross Pay?

• The amount of money you earn after taxes and other expenses are taken out.

• The amount of money you earn before taxes and other expenses are taken out.

• The amount of money you save after all expenses.

• The amount of money you spend on taxes.

What is the definition of Net Pay?

• The total amount of money earned before any deductions

• The amount of money you take home after taxes and other expenses are taken out

• The amount of money you save each month

• The total amount of money spent on expenses

What is the term for money taken from your gross pay to cover taxes and voluntary deductions?

• Net Pay

• Gross Pay

• Deductible

• Allowance

What is the definition of "Wage"?

• Money you earn per hour

• Money you earn per month

• Money you earn per year

• Money you earn per week

What is a fixed regular payment, often expressed as an annual sum, that is paid biweekly or every month?

• Wage

• Commission

• Salary

• Bonus