Financial Literacy Quiz

Derek is paid $550 per week but only brings home $375 due to deductions. Which of the following is Derek’s net earnings?

• $925

• $550

• $375

• $175

The electronic transfer of wages into an employee’s account refers to which of the following?

• Electronic funds wiring

• Direct deposit

• Payroll debit

• Automatic teller

Which of the following best describes a pension plan?

• A form of retirement plan in which employers contribute money to a plan which provides employees a monthly income during retirement

• A type of disability insurance which provides employees a partial salary if they become unable to work due to illness

• A monetary safety net for a beneficiary upon the death of an employee

• A wage replacement program for employees who suffer from job-related injuries

Katie is paid $11.50 per hour and typically works 30 hours a week. She also earns 3% commission on all of her sales. What is Katie's gross wage for one week with $7,880 in sales?

• $345

• $236.40

• $618.04

• $581.40

List and describe three forms of non-monetary compensation(types of benefits).

What is the difference between a Flexible Spending Account (FSA) and a Health Savings Account (HSA)?

• HSAs belong to the employee while FSAs belong to the employer

• HSAs are taxed while FSAs are not

• HSAs are only offered by large corporations while FSAs are offered to employees of small businesses

• HSAs do not allow employers to contribute to the account while FSAs do

Select all of the following which are advantages to salaried employees.

• Better access to benefit packages and retirement plan options

• Larger bonuses and more paid vacation

• May be exempt from earning overtime

• Same income even when working less than 40 hours per week

Some states do NOT collect state income tax.

• True

• False

Which of the following is NOT considered a mandated deduction?

• Social Security tax

• Federal income tax

• Medicare tax

• Sales tax

Which of the following correctly defines withholdings?

• The amount of money an employee earns each year

• The percentage of an employee’s yearly raise

• Amount of wages which are not included in an employee’s paycheck

• The legal right of an employee to earn money