U22 - Understanding Paycheck Deductions

What are paycheck deductions?

• Amounts added to a worker's gross pay

• Amounts subtracted from a worker's gross pay

• Bonuses given to employees

• Extra hours worked

Which of the following is a required deduction by law?

• Charitable contributions

• Union dues

• Federal taxes

• Savings deposits

What is gross pay?

• The amount after all deductions

• The amount before any deductions

• The amount after taxes

• The amount after bonuses

What should a worker receive each time they are paid?

• A list of bonuses

• A detailed list of deductions

• A list of holidays

• A list of promotions

What is FICA?

• A type of bonus

• A type of voluntary deduction

• Social Security and Medicare taxes

• A type of insurance

Why should workers examine their pay stubs carefully?

• To find errors in bonuses

• To compare with W-2 tax forms

• To calculate future promotions

• To find new job opportunities

What does FICA stand for?

• Federal Insurance Contributions Act

• Federal Income Contributions Act

• Federal Insurance Collection Act

• Federal Income Collection Act

What is the current Social Security tax rate for individual workers?

• 6.2%

• 4.5%

• 7.5%

• 5.0%

At what age are workers eligible to receive Medicare benefits?

• 65

• 60

• 70

• 55

What percentage of wages do workers contribute to Medicare?

• 1.45%

• 2.0%

• 1.25%

• 1.75%