Income and Taxes Test

Any income (wages/salary) that is generated by the work someone performs

• Portfolio Income

• Passive Income

• Earned Income

Money paid by the hour and for an agreed number of hours per week; especially for unskilled or manual labor

• Wage

• Deduction

• Salary

What is a pay period?

• time worked beyond an employee’s regular hours

• the number of days an employee works and is paid for each paycheck

• the day a person is paid

• a fixed amount of money an employee is paid to do a job

What is gross pay?

• a pay period of every 2-weeks with 26 pay periods per year

• the amount of money earned before any deductions are subtracted

• the amount of money left in a worker’s paycheck after deductions are taken out

• the amount of money subtracted from a worker’s pay

Which of these is an optional/voluntary deduction?

• healthcare insurance

• state income tax

• Social Security tax

• Medicare tax

What is a deduction?

• the total income for a pay period

• net pay

• the amount of money subtracted from your paycheck

• overtime pay

How much did Jose earn this pay period? *Before deductions were taken out

• $1335.00

• $445.00

• $340.52

• None of the above

How much money did Jose take home this pay period?

• $340.52

• $445.00

• $1,021.56

• None of the above

What is the gross amount for the year?

• 6,590.59
• 22,400
• 15,809.41
• 2,240

Roads, police, schools, governmental agencies, fire and emergency services are all funded by taxes

• true
• false