Financial Lit Ch 2 Study Guide

The amount you receive in your paycheck will be less than your total earnings.

• True
• False

The most common payroll deduction is for health insurance.

• True
• False

The amount withheld from your paycheck is based partly on your marital status.

• True
• False

Social Security tax is not deducted after your earnings reach a certain level.

• True
• False

FICA taxes by the employee and employer.

• True
• False

State tax rates can be progressive but not flat.

• True
• False

A fringe benefit is another name for a deduction.

• True
• False

Employees can save money on taxes when paying for benefits after taxes.

• True
• False

The W-4 form is used to predict the amount that should be withheld from paychecks in order to cover the tax that will be owed when an employee's tax return is filed.

• True
• False

The job with the highest gross pay will always also have the highest value.

• True
• False