Final Assessment – Understanding a Paycheck and Pay Stub

What is a pay period?

• time worked beyond an employee’s regular hours

• the number of days an employee works and is paid for each paycheck

• the day a person is paid

• a fixed amount of money an employee is paid to do a job

What is gross pay?

• a pay period of every 2-weeks with 26 pay periods per year

• the amount of money earned before any deductions are subtracted

• the amount of money left in a worker’s paycheck after deductions are taken out

• the amount of money subtracted from a worker’s pay

Which of these is an optional/voluntary deduction?

• healthcare insurance

• state income tax

• Social Security tax

• Medicare tax

Multiplying a worker’s hourly wage amount and hours worked per pay period equals?

• pay period

• salary

• gross pay

• net pay

A fixed amount of money per year paid to an employee to do a job is known as a _____?

• hourly rate

• deduction

• overtime pay

• salary

Which of these is the amount of money that remains after taxes have been deducted that a person can save or spend as he or she wishes?

• semi-monthly paycheck

• gross pay

• residents

• disposable income

Gross pay and net pay are different because:

• Gross pay is the total earnings before deductions, while net pay is the amount left after deductions.

• Gross pay is the amount after taxes, while net pay is before taxes.

• Gross pay and net pay are the same.

• Gross pay is only for hourly workers, net pay is for salaried workers.

Deductions are amounts taken out of a worker’s paycheck. How do they affect a worker’s paycheck?

• They increase the total pay received.

• They have no effect on the paycheck.

• They reduce the total pay received.

• They are added as bonuses.

3. What is a basic definition of disposable income?

• The amount of money left after paying taxes

• The total income before any deductions

• Money spent on luxury items

• Income received from investments

4. List two deductions that are mandatory.

• Provident Fund and Professional Tax

• House Rent Allowance and Medical Allowance

• Bonus and Overtime

• Travel Allowance and Food Coupons