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Understanding Payroll and Federal Income Taxes

Total questions: 73

Worksheet time: 48mins

Name
Class
Date
1.
Required payments to a government are_______________. 
a)
income
b)
taxes
c)
medicare
2.
Total pay or earnings made over a one-year period before any deductions have been taken is _____________.
a)
gross annual income
b)
net monthly income
c)
net annual income
d)
gross monthly income
3.
The amount of salary received after taxes and deductions
a)
Gross Pay
b)
Net Pay
c)
Total Earnings
d)
Bill 
4.
What form is used by your employer to allow them to withhold taxes from your paycheck?
a)
I-9
b)
W-2
c)
W-4
d)
1040EZ
5.

Which type of tax do you pay on your home , land or vehicles?

a)

Location Tax

b)

Land Tax

c)

Property Tax

d)

House Tax

6.
Net pay is...
a)
Your take home pay after taxes
b)
Your total income before taxes.
7.
A tax on purchased goods and services
a)
community
b)
property tax
c)
earned income
d)
Sales tax
8.
What is the purpose of a W-4?
a)
To track your tax history
b)
To tell you how much you will earn each month.
c)
To inform you on how much your employer will withhold on your taxes
d)
None of the above
9.
When you pay your local taxes, you pay for...
a)
Parks
b)
Education
c)
Fire Departments
d)
All the above
10.
The form _______tells you how much was taken out of your pay for the year.
a)
W-2
b)
W-4
c)
1040
d)
1040EZ
11.
IRS stands for what when talking about taxes?
a)
Internal Revenue Service
b)
Individual Return System
c)
I'm Really Sorry
d)
International Revenue System
12.
On the W-4 form, which would give you more money in your pocket per paycheck, a 0 or a 1?
a)
1
b)
0
c)
They are the same
13.
Gross income is:
a)
the total amount of money you earn
b)
the amount of money you receive after decuctions are subtracted
c)
the total amount of money you spend
d)
sales taxes on items you buy
14.
Net income is:
a)
the total amount of money you earn
b)
the amount of money you receive after deductions are subtracted from your gross income
c)
the amount of money that is taken away in the form of taxes
d)
the hourly rate of pay
15.
Alyssa has her first job at the local bakery. After working for one week, she received her first paycheck. The total amount of money she is able to put in the bank is $75.62. What type of income does this amount describe?
a)
Gross Income
b)
Net Income
c)
Both Gross and Net Income
d)
None of the above
16.
What is the amount of money you earn, before taxes are taken out?
a)
Net Income
b)
Gross Income
c)
Property Income
17.
The amount of money left over after taxes are taken out is called...
a)
Gross Income
b)
Net Income
18.

Taxes the boss takes out of your check for social security and medicare

a)

Property Tax

b)

Income Tax

c)

Sales Tax

d)

Payroll tax

19.
Money taken out your income
a)
gross
b)
net
c)
deductions
d)
expenses
20.
You should keep your tax records for how long in case of an audit?
a)
10 years
b)
20 years
c)
1 year
d)
3-5 years
21.
Which is the highest tax rate of the following?
a)
Single
b)
Married-Joint Return
c)
Head of Household
d)
Qualifying Widow
22.
For which of the following would an employer withhold money from an employee's pay?
a)
Federal income tax
b)
Social Security tax
c)
Medicare Tax
d)
All of the above
23.
Individuals are required to file a report of their income and the taxes that are owed to the federal government in a(n)
a)
Tax table
b)
W-2 form
c)
Federal tax return
d)
W-4 form
24.
Linda's employer sent her a(n) _____, which summarizes her earnings and the amount withheld from her paychecks.
a)
W-4 form
b)
W-2 form
c)
I-9 form
d)
1040 form
25.

Taxes paid by the employee and the employer that are used to finance the federal Social Security and Medicare programs are ________ taxes.

a)

FICA

b)

net

c)

W-4

d)

deduction

26.

What is gross pay minus payroll deductions?

a)

net pay

b)

gross pay

c)

commission

d)

salary

27.

Money Paid by people for support of the government

a)

federal

b)

tax

c)

treasury

d)

exemption

28.

a person who is supported by another

a)

emperor

b)

collector

c)

exemption

d)

dependent

29.

a person hired to collect taxes

a)

treasury

b)

federal

c)

collector

d)

civilized

30.

What is Federal Income Tax?

a)

Funds the Disney Corporation with money it needs to operate.

b)

Money that supports the Executive, Legislative, and Prejudicial branch of the government.

c)

A tax that supports the air traffic navy platoon system, the national board of realtors as well as the web of excessive disproportionate growth.

d)

A tax that supports the federal government all its systems, highway construction and the military.

31.
What is State Income Tax?
a)
Taxes Paid by the Federal Government
b)
Taxes Mandated by the Federal Government
c)
Taxes Mandated by the State Government to pay for the Legal System in the United States
d)
The Taxes that pay for Schools, Libraries, and Police Departments
32.
What is Property Tax
a)
Tax on Land, Vehicles and Property
b)
Tax on Government Buildings
c)
Tax on Businesses
d)
Tax on Educators
33.
When you combine Medicare and Social Security what Tax do you have?
a)
FICO
b)
FICE
c)
FACE
d)
FICA
34.
Income tax is-
a)
Money your employer pays to you
b)
Money you earn and put into the bank
c)
tax paid on the money you earn each year
d)
FREE MONEY!!
35.
Payroll Tax is-
a)
the amount of money you actually get to take home
b)
FREE MONEY
c)
tax taken out of your paycheck by your employer or boss
d)
tax when you buy something
36.

Curtis purchased a new pair of jeans for $18. When Curtis pays for his jeans his total is almost $20 because of taxes. Which type of tax does Curtis pay?

a)

Payroll Tax

b)

Income Tax

c)

Sales Tax

d)

Property Tax

37.

Your parents pay a tax each year of $3500 that is based off the value of your home. Which type of tax do your parents pay each year?

a)

Payroll Tax

b)

Income Tax

c)

Sales Tax

d)

Property Tax

38.

Hannah's first paycheck from her job shows that $450 was taken out in taxes. Which type of tax was taken out of Hannah's paycheck?

a)

Payroll Tax

b)

Income Tax

c)

Sales Tax

d)

Property Tax

39.

Money that is subtracted or taken out from your pay

a)

rate

b)

deduction

c)

gross pay

d)

net pay

40.

Working extra hours (usually for more money than an employee’s hourly rate)

a)

rate

b)

part time

c)

full time

d)

overtime

41.

Beginning from the 1 st of January (or the time the employee began working for the company) until now in the current year

a)

employment

b)

year to date

c)

hire date

d)

termination date

42.

Valerie just opened a bank account and started working for a local restaurant that offers paycards and direct deposit. How should she ask to be paid?

a)

direct deposit

b)

pay card

43.

Emily’s company pays employees by direct deposit or pay cards only. Emily doesn’t have a bank account. How should she ask to be paid?

a)

direct deposit

b)

pay card

44.
Kristine submitted a ______ to her employer specifying the number of allowances.
a)
Income tax return
b)
Form W2
c)
Employee Withholding Sheet
d)
Form W4
45.
Diane will pay LESS in payroll tax if she elects which of the following allowances?
a)
4
b)
3
c)
5
d)
2
46.
An employee will receive the SMALLEST pay check if he/she elects which of the following allowance?
a)
3
b)
2
c)
4
d)
5
47.

The amount of money left once all deductions have been taken from gross income is called

a)

Net Income

b)

Dependent

c)

Employee benefits

d)

Pay Stub

e)

Tax Liability

48.

Products or services provided by an employer that adds extra value for employees beyond wages paid is called

a)

Net Income

b)

Dependent

c)

Employee benefits

d)

Pay Stub

e)

Tax Liability

49.

A form that outlines the deductions made to an employees wages is called a(n)

a)

Net Income

b)

Dependent

c)

Employee benefits

d)

Pay Stub

e)

Tax Liability

50.

Stacey is starting her new job at Hats-n-More. In order for her manager to know how much to withhold in federal taxes, Stacey has to fill out which form?

a)

W-2

b)

I-9

c)

W-4

d)

1040ez

51.

Which of the following are examples of voluntary employee benefits (Check all that apply).

a)

Health Insurance

b)

Sick Days

c)

Employee Retirement Accounts

d)

Paid Vacation

52.
How many hours are generally considered to be full time employment?
a)
20 Hours a week
b)
25 hours a week
c)
30 Hours a week
d)
40 hours a week
53.
What is a dependent?
a)
the rate of pay you make per hour
b)
a person who provides your financial support
c)
the amount of tax a person will incur at the workplace
d)
a person the government gives you a tax break for because you are supporting them financially
54.
FICA is comprised of two different parts… what are they?
a)
Social security and federal tax
b)
Social security and state tax
c)
Medicare and social security
d)
Medicare and federal tax
55.
Determines the amount of federal withholding tax from an employee's paycheck
a)
Taxation Form
b)
I9 Form
c)
W4 Form
d)
Deduction Form
56.

__________ is time worked beyond the 40 hours.

a)

Flextime

b)

Bonus

c)

Wage

d)

Overtime

57.

Amount of money earned before payroll taxes

a)

Gross income

b)

Net income

c)

Paycheck

58.

Jane works 32 hours this week and gets $9 per hour. What is her gross pay?

a)

$1152.00

b)

$288.00

c)

$388.00

d)

$412.00

59.

Which of the following is a MANDATORY deduction from your paycheck? (check all that apply)

a)

FICA

b)

Voluntary Taxes

c)

Property Taxes

d)

Federal Income Taxes

60.

What two taxes are also know as FICA Tax?

a)

Medicare

b)

Federal Income Taxes

c)

Social Security

d)

Local Taxes

61.

Are court ordered child support payments considered mandatory deductions from a check?

a)

Yes

b)

No

c)

Maybe

d)

Yes and No

62.

Which of the following is an voluntary payroll deduction? (Voluntary means optional).

a)

FICA

b)

State Taxes (in most states)

c)

Federal Income Tax

d)

Vision and Dental

63.

All of the following are true about W-4's, EXCEPT

a)

W4 allows $ to be deducted from your paycheck for taxes owed

b)

A W4 form is the same as a W2 form

c)

W4 is filled out when you start a job

d)

The maximum will be deducted from your check if you do not complete a W-4 form.

64.

An amount your employer withholds from your earnings to pay for things like taxes or insurance

a)

withholding

b)

deduction

c)

exemption

d)

allowance

65.

Money you are due at retirement age because you payed into the system all the years you worked

a)

Entitlements such as health insurance

b)

Entitlements such as Social Security and Medicare

c)

Medicaid only

d)

Social Security Only

66.

This mean that taxes won’t be withheld from your wages during the year.

a)

Deductions

b)

Exempt Status

c)

Allowances

d)

Zero Dependents

67.

This form helps the payroll department of your employer figure out how much tax to take out of your paycheck.

a)

1040 Form

b)

W-2 Form

c)

W-4 Form

d)

I9 Form

68.

What is the percentage tax rate for social security deductions?

a)

6%

b)

1.45%

c)

6.20%

d)

None apply

69.

What does it mean when the withholding or allowance number is lower?

a)

No taxes are withheld from your check

b)

Nothing

c)

Less is withheld from your check and you have a greater chance of a tax return.

d)

More is withheld from your check and you have a greater chance of a tax return.

70.

The acronym FICA means what?

a)

Federal Insurance Care Act

b)

Federal Insurance Contribution Act

c)

Federal Insurance Commitment Act

d)

Federal Insurance Common Act

71.

What does the acronym IRS stand for?

a)

Internal Revenue Service

b)

Internal Report Service

c)

Internal Reform Service

d)

Internal Rehabilitation Service

72.

What is the tax rate percentage for Medicare deductions?

a)

1.45%

b)

6.20%

c)

7.50%

d)

1.48%

73.

Seeking job opportunities through people you know

(a)  

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