4-3 Pay Stubs Review Business U

Fill in the blank: A 401(k) is an employee-sponsored qualified _______ plan that allows both employees and employers to contribute money on a tax-deferred basis.

• retirement

• savings

• investment

• health

Fill in the blank: _______ Tax is a tax imposed on the income generated by an individual or business.

• Income

• Sales

• Property

• Value Added

Fill in the blank: The _______ Revenue Service is the U.S. federal agency responsible for enforcing tax law and collecting taxes on behalf of the U.S. government.

• Internal Revenue

• International Revenue

• Independent Revenue

• Interstate Revenue

Fill in the blank: _______ Pay is the residual earnings an employee keeps or “takes home” after all payroll deductions have been subtracted from their gross pay.

• Net Pay

• Gross Pay

• Bonus Pay

• Overtime Pay

Fill in the blank: A _______ Stub is a short summary outlining an employee’s total earnings and deductions for individual and cumulative pay periods.

• Pay

• Work

• Salary

• Income

Fill in the blank: Payroll _______ are involuntary and voluntary amounts withheld (or deducted) from an employee’s total earnings.

• Deductions

• Contributions

• Taxes

• Benefits

Fill in the blank: Payroll _______ are taxes imposed by the government based on employee earnings.

• Taxes

• Deductions

• Benefits

• Contributions

Fill in the blank: Post-Tax Payroll _______ is an amount deducted from an employee’s earnings after all necessary taxes have been withheld.

• Deduction

• Addition

• Credit

• Bonus

Fill in the blank: Pre-Tax Payroll _______ is an amount deducted from an employee’s total earnings before any taxes are withheld.

• Deduction

• Addition

• Bonus

• Credit

Fill in the blank: A Qualified _______ Plan is an IRS-approved retirement plan that offers various benefits and tax incentives to employees.

• Retirement

• Health

• Education

• Savings