Financial and Tax Terms

What is a 401K?

• A) A type of savings account

• B) An employee-sponsored qualified retirement plan

• C) A health insurance plan

• D) A type of loan.

Income Tax is:

• A tax on property

• A tax on sales

• A tax on income

• A tax on imports

The Internal Revenue Service is responsible for enforcing tax law and collecting taxes on behalf of which government?

• Canadian

• U.S.

• British

• Australian

Net Pay refers to the earnings an employee takes home after what?

• Bonuses

• Deductions

• Overtime

• Commissions

A Pay stub is a short summary outlining an employee’s total earnings and deductions for what periods?

• Weekly

• Monthly

• Individual and cumulative pay periods

• Annual

Payroll deductions are:

• A) Voluntary amounts only

• B) Involuntary amounts only

• C) Involuntary and voluntary amounts withheld from an employee’s total earnings

• D) Taxes only

Payroll taxes are imposed by the government based on what?

• Employee earnings

• Company profits

• Sales

• Imports

Post-tax payroll deduction is an amount deducted from an employee’s earnings after what?

• A) All necessary taxes have been withheld

• B) Bonuses are added

• C) Overtime is calculated

• D) Commissions are paid.

Pre-tax payroll deduction is an amount deducted from an employee’s total earnings before what?

• Any taxes are withheld

• Bonuses are added

• Overtime is calculated

• Commissions are paid

Qualified Retirement Plan is approved by which agency?

• A) IRS

• B) FDA

• C) EPA

• D) SEC