Tax and Insurance Quiz

What does FICA stand for?

• Federal Insurance Contribution Act

• Federal Income Contribution Act

• Federal Insurance Collection Act

• Federal Income Collection Act

What is the purpose of Social Security taxes?

• To fund retirement and disability benefits

• To provide health insurance

• To support education

• To fund military expenses

What is the tax rate for Medicare for both employers and employees?

• 1.45%

• 2.00%

• 1.25%

• 1.75%

What is the range of income tax rates in the U.S.?

• 10% to 35%

• 5% to 25%

• 15% to 40%

• 20% to 30%

Which of the following is a voluntary deduction?

• 401(k) contributions

• Social Security

• Medicare

• Income tax

What type of insurance is an agreement where an insurance company pays for medical expenses?

• Health Insurance

• Life Insurance

• Disability Insurance

• Car Insurance

What does a life insurance policy provide?

• Financial safety net to loved ones after you pass away

• Coverage for medical expenses

• Protection against theft

• Investment opportunities

What is a pre-tax health savings plan used for?

• Paying for qualified medical expenses

• Investing in stocks

• Buying a house

• Paying for education

What does short term disability insurance cover?

• Beneficiary's earned income against disability

• Medical expenses

• Life insurance

• Retirement savings

What are charitable donations usually directed towards?

• Union representatives in politics or an organization close to your role

• Buying stocks

• Paying taxes

• Purchasing insurance