Income Benefits and Taxes Test

What is the lowest pay rate allowed by law for each regular hour of work?

• Overtime pay

• Minimum wage

• Salary

• Commission

What type of payment is made by an employer to an employee on a regular basis, often expressed as an annual sum?

• Wages

• Tips

• Salary

• Commission

What is disposable income?

• Money earned before taxes

• Money available to spend or save after taxes have been paid

• Money received as a bonus

• Money saved for retirement

Which of the following is NOT a mandatory benefit that employers are legally required to provide?

• Social Security and Medicare

• Unemployment Insurance

• Workers Compensation Insurance

• Health Insurance

What is the most important factor to consider when evaluating an employer's compensation package?

• The base salary offered for the position.

• The availability of paid time off and vacation days.

• The employer's contribution to retirement savings plans.

• The total compensation package, including both salary and benefits.

What percentage of an employee's Social Security and Medicare contributions is matched by their employer?

• 25%

• 50%

• 75%

• 100%

What is unearned income?

• Money received from working a job

• Money received from sources other than working a job

• Money received from selling goods

• Money received from investments

Which of the following is a form of unearned income from private sources?

• Salary

• Interest

• Freelance earnings

• Business profits

Which of the following is NOT a form of unearned income?

• Dividends

• Pension funds

• Individual retirement accounts

• Wages

Which of the following is an example of a government transfer payment?

• Salary

• Financial aid

• Business profits

• Freelance earnings