Chapter 2 Net Pay Test

Which term refers to the law requiring deductions for Social Security and Medicare?

• FICA

• Net Pay

• Gross Pay

• Withholding Allowance

What is the definition of Net Pay?

• The amount of pay you earn before any deductions.

• An amount that reduces your taxable wages, based on the number of people you support.

• The law requiring deductions for Social Security and Medicare.

• Your "take-home" pay after all deductions are subtracted.

Increasing the number of allowances you claim will increase the amount of federal tax withheld.

• True

• False

To calculate state income tax with a flat rate, which of the following do you need to know? (Select all that apply)

• Annual Gross Pay, Number of pay periods per year, Personal Exemptions, State Tax Rate

• Only Annual Gross Pay

• Only State Tax Rate

• Only Personal Exemptions

Tags

CCSS.7.RP.A.3

Which of the following is NOT a deduction that can be withheld from an employee's paycheck?

• Federal Income Tax

• Social Security Tax

• Gross Pay

• Union Dues

Tags

CCSS.6.RP.A.3B

Which of the following best describes a withholding allowance?

• The amount of pay you earn before any deductions.

• An amount that reduces your taxable wages.

• The law requiring deductions for Social Security and Medicare.

• Your "take-home" pay after all deductions.

Which tax is calculated at varying rates as your income reaches new levels?

• State Tax

• Graduated Income Tax

• Medicare Tax

• FICA Tax

Tags

CCSS.7.RP.A.3

Which deduction is used to support government services and agencies?

• Social Security Tax

• Federal Income Tax

• Union Dues

• Medical Insurance

Which of the following is required to be matched by the employer for each employee?

• Federal Income Tax

• FICA Taxes

• State Tax

• Union Dues

Tags

CCSS.6.RP.A.3C

Which of the following is NOT needed to calculate state income tax with a flat rate?

• Annual Gross Pay

• Number of pay periods per year

• Personal Exemptions

• Union Dues

Tags

CCSS.7.RP.A.3