Lesson 2 Vocabulary Quiz

What does Gross Pay mean?

• The money you take home after deductions

• The total amount earned before taxes and deductions

• The amount set aside for retirement savings

• The extra money earned from overtime

Net Pay is best described as:

• Your hourly wage multiplied by hours worked

• The total amount before any deductions

• The amount you take home after deductions

• The money set aside for taxes

What is a Deduction?

• Money earned for working extra hours

• Money taken out of your paycheck for taxes, insurance, or retirement

• A payment from your employer for healthcare

• A savings account for emergencies

Which term describes the portion of your paycheck your employer sends directly to the government for taxes?

• Net Pay

• Withholding

• Deduction

• Benefit

What is a Federal Tax?

• Money collected by state governments for schools

• Money collected by the U.S. government to fund federal programs

• A tax that only applies to healthcare

• Money deducted for retirement plans

Which of the following is a State Tax?

• Tax collected by the federal government to fund the military

• Tax collected by your state government to fund local services

• Tax taken out only for retirement savings

• Tax only paid by businesses

Social Security Tax is collected to fund:

• Student loans

• Disability and retirement benefits

• Public schools

• Paid vacation

Which tax funds healthcare for people over 65 and certain younger people with disabilities?

• Medicare Tax

• Social Security Tax

• Federal Tax

• State Tax

Which of the following is considered a Benefit?

• Extra hours of work

• A holiday bonus

• Health insurance, retirement plans, or paid time off

• Federal tax withholdings

What does Health Insurance cover?

• Medical expenses

• Retirement savings

• Paid vacation days

• Government taxes