Owens Income Pretest

Which of the following is an employee benefit that an employer may provide?

• Retirement benefits

• Tuition reimbursement

• Vacation and sick days

• All of the above

Which one of the following could NOT be called income?

• .Interest paid on a loan

• Interest received from a savings account

• A paycheck

• An allowance

Which of the following is NOT usually an employee benefit that an employer may provide the employee?

• Clothes

• Vacation and sick days

• Insurance

• Employee discounts

What is income?

• Money spent

• Money earned

• Money saved

• Money invested

Take-home pay is also called:

• Disposable income

• Fixed income

• Net income

• Gross income

What is a 401(K) plan?

• A portion of salary deducted from net pay and placed in a special account.

• Money set aside to pay medical expenses not covered by insurance.

• A portion of salary deducted from gross pay and placed in a special account.

• A plan that specifies benefits to be received at retirement age, based on total earnings and years of work.

Carmen earns $625 per month in net income. She shares living expenses with a roommate. Her expenses are: food, $175/month; rent, $150/month; utilities, $35/month; and transportation, $20/month. How much does Carmen have left each month to save and spend on other items, based on her monthly net income?

•   $380

• $190

• $215

• $245

 

8. Which is a mandatory payroll deduction?

• Retirement fund

• Interest income

• Health insurance

• Social security

Which tax is the Federal Government’s leading source of revenue?

• Unemployment tax

• Medicare tax

• Personal income tax

• Social Security tax

What is the purpose of the Form W-4?

• Verifies an employee’s eligibility to work

• Allows the employee to join a tax-deferred savings plan

• Determines how much of an employee’s paycheck will be withheld for federal income taxes

• Informs the employer which method of payment the employee prefers