Unit 2 Unit Test Taxes & Fundamentals of Algebra

First Name:

Last Name:

Hour/Class

1. Each of these is a common payroll deduction EXCEPT…

• Office supplies and equipment
• Federal income taxes
• FICA
• Health insurance plan

2. Kiki receives a paycheck for 15 hours of work at a rate of $20 per hour. Her paystub lists 401(k) withholdings of $40, FICA of $20, federal income taxes of $26, and a healthcare payment of $8. What is Kiki’s net pay?

• $206
• $254
• $300
• $394

3. Which expenditures make up the greatest share of state spending?

• Education and health care
• Transportation and corrections
• Low-income assistance and pensions
• Environmental programs and parks

4. Lamar made $92,000 as a data analyst his first year out of college. He calculated his above-the-line deductions to be $5,500, his itemized deductions to be $7,000, and the standard deduction is $12,950. What deductions is Lamar allowed to take that will minimize his taxes owed?

• He can take all three for $25,450 in deductions
• He can take the $7,000 and the $12,950 for $19,950 in deductions
• He can take the $5,500 and the $12,950 for $18,450 in deductions
• He can take the $5,500 and the $7,000 for $12,500 in deductions

5. Maricela calculated that she owes $2,493 in federal taxes after all deductions and credits. Her W-2 states that $2,670 was withheld in federal tax. This means that Maricela…

• Has to pay $177 in taxes owed
• Will receive a refund of $177
• Will pay $177 less in taxes next year since she overpaid this year
• Should speak to her employer to get the $177 in extra taxes that they withheld

6. Which statement best describes the difference between being paid a wage versus being paid a salary?

• A wage is an hourly rate below $20 per hour, while a salary is an hourly rate above $20 per hour
• A wage is paid based on how many hours you work, while a salary is a fixed amount paid regardless of the number of hours
• A wage is paid every two weeks, while a salary is paid monthly
• A wage is paid to part-time employees, while a salary is paid to full-time employees

7. Who should consider completing a W-4 form?

• Aaliyah, who wants to enroll in her company’s 401(k) program for the first time
• Bruno, who just adopted a baby and wants to adjust his tax withholdings
• Carter, who is considering a career change and wants to update his resume
• Denise, who doesn’t like her company’s health insurance plan options