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Payroll Taxes and Credit

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

What is net pay?

a)

The total earnings on your paycheck

b)

Three taxes that everyone must pay

c)

How much a person is worth in total

d)

The amount of your paycheck after taxes are taken out

2.

What is gross earnings?

a)

The total amount of wages on your paycheck

b)

Three taxes that everyone must pay

c)

How much a person is worth in total

d)

The amount of your paycheck after taxes are taken out

3.

What are the three taxes that everyone must pay from their paycheck?

a)

Federal income tax, state income tax and county tax

b)

Federal income tax, sales tax and Medicaid tax

c)

Federal income tax, Social Security tax, Medicare tax

d)

State income tax, Social Security tax and Sales tax

4.

What is Medicare tax for?

a)

It funds health insurance for retired Americans

b)

It funds Medicaid

c)

It funds health insurance for all Americans

d)

It funds health insurance for those who can't afford it under the Affordable Healthcare Act

5.

What is another name for social security tax?

a)

Income tax

b)

FICA

c)

Medicare tax

d)

State tax

6.

How long should an MEDIUM-TERM financial goal take to achieve?

a)

1 day - 3 months

b)

3 - 6 months

c)

6 - 18 months

d)

3 - 12 months

7.

What is federal tax used for?

a)

It is used to fund federal infrastructure and programs

b)

It provides income to Americans in retirement

c)

It is used to fund state infrastructure and programs

d)

It funds health insurance to Americans in retirement

8.

What is social security tax used for?

a)

It is used to fund federal infrastructure and programs

b)

It funds health insurance to Americans now

c)

It provides income to Americans in retirement

d)

It funds health insurance to Americans in retirement

9.

How long should a LONG-TERM financial goal take to achieve?

a)

1 - 3 years

b)

3 - 6 months

c)

6 - 18 months

d)

3 - 12 months

10.

You need money to borrow money. The money you already have is called:

a)

Collateral

b)

Capital

c)

Creditor

d)

Credit

11.

The property that you can let the lender keep until the loan is paid off is called:

a)

Capital

b)

Closed-End Credit

c)

Capacity

d)

Collateral

12.

Being responsible with money and other obligations is:

a)

Character

b)

Credit Bureau

c)

Creditworthy

d)

Capacity

13.

Your ability to make loan payments with your current income is called:

a)

Character

b)

Capacity

c)

Conditions

d)

Credit Freeze

14.

Choose the two meanings of "conditions" when talking about credit:

a)

A good reason why past problems with credit won't affect your ability to pay off a new loan

b)

You need money to borrow money

c)

Something of yours that the lender can keep if you don't pay off your loan

d)

The terms and special requirements of the loan agreement

15.

A business that gathers, stores, and sells credit information to other businesses?

a)

Credit Report

b)

Credit Freeze

c)

Credit Bureau

d)

Character

16.

The complete record of your borrowing and past payment performance.

a)

Credit Bureau

b)

Credit History

c)

Credit Report

d)

Credit Freeze

17.

A document that contains a consumer's credit history:

a)

Capacity

b)

Character

c)

Credit Report

d)

Credit History

18.

A rating based on a consumer's credit history that indicates how likely you are to pay your debts responsibly:

a)

Credit Score

b)

Capacity

c)

Credit Injury

d)

Credit Rating

19.

You should only cosign a loan for someone if:

a)

You love them

b)

They love you

c)

You trust them

d)

You are afraid of them

20.

What is the best answer to most of life's questions?

a)

Yes

b)

No

c)

42

d)

It depends