Gross pay vs Net pay

What is gross pay?

• The amount of money you take home

• The total amount earned before any deductions

• The amount after taxes are taken out

• The amount after insurance is deducted

• $1300

• $1000

• $700

• $300

Which of these is NOT typically a mandatory payroll deduction?

• Federal income tax

• Social Security tax

• Health insurance premiums

• Medicare tax

Calculate the Social Security tax if the rate is 6.2% on gross pay of $2000.

• 124.00

• 162.00

• 112.00

• 120.00

Which deduction is usually the largest on most paychecks?

• Medicare tax

• Federal income tax

• State tax

• Social Security tax

A worker's gross pay is $1500. If Medicare tax is 1.45%, how much is deducted for Medicare?

• 21.75

• 14.50

• 25.75

• 17.25

What is a voluntary deduction?

• Federal income tax

• Social Security tax

• 401(k) contributions

• Medicare tax

If your annual salary is $48,000, what is your monthly gross pay?

• $3,600

• $4,000

Which statement about net pay is TRUE?

• It's always more than gross pay

• It's the same as gross pay

• It's always less than gross pay

• It varies randomly each month

Calculate federal tax withholding if the rate is 12% on gross pay of $3000

• 350.00

• 360.00

• 380.00

• 340.00