Unit 2: Net Pay

What is net pay?

• The total amount of money an employee earns before taxes

• The total amount of money an employee earns after taxes and deductions are taken out

• The total amount of money an employee earns including bonuses

• The total amount of money an employee earns after bonuses

Tags

CCSS.7.RP.A.2

CCSS.7.RP.A.3

What is federal income tax?

• A tax collected by the state government on annual earnings

• A tax collected by the US IRS on the annual earnings of individuals and businesses

• A tax collected by local municipalities on property

• A tax collected by the US IRS on sales transactions

What are withholding allowances?

• Money withheld for retirement savings

• Money withheld for health insurance

• Money you can withhold from taxation based on whom you support

• Money withheld for social security

Who is considered a dependent?

• A person who relies on another for emotional support

• A person who relies on another, especially a family member, for financial support

• A person who relies on another for educational support

• A person who relies on another for housing

What is a standard deduction?

• A dollar amount set by the US IRS that most taxpayers can add to their taxable income

• A dollar amount set by the US IRS that most taxpayers can deduct from their taxable income to reduce their tax bill

• A dollar amount set by the US IRS that most taxpayers can donate to charity

• A dollar amount set by the US IRS that most taxpayers can use for medical expenses

What is taxable income?

• The portion of your gross income on which you are required to pay property taxes

• The portion of your gross income on which you are required to pay sales taxes

• The portion of your gross income on which you are required to pay income taxes

• The portion of your gross income on which you are required to pay estate taxes

What is a graduated tax rate?

• Paying taxes at a flat rate for all income levels

• Paying taxes at a different rate for each of several levels of taxes

• Paying taxes at a single rate for all property

• Paying taxes at a reduced rate for senior citizens

What is state income tax?

• A percentage of money that you pay to the federal government based on the income you make at your job

• A percentage of money that you pay to the state government based on the income you make at your job

• A percentage of money that you pay to the local government based on the income you make at your job

• A percentage of money that you pay to the international government based on the income you make at your job

Tags

CCSS.7.RP.A.2

CCSS.7.RP.A.3

What is a flat tax rate?

• Collecting the same rate on all income levels

• Collecting a different rate on all income levels

• Collecting a reduced rate on all income levels

• Collecting a higher rate on all income levels

What are personal exemptions?

• A specific amount of money that you could deduct for your business expenses

• A specific amount of money that you could deduct for your travel expenses

• A specific amount of money that you could deduct for yourself and for each of your dependents

• A specific amount of money that you could deduct for your educational expenses