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WorksheetsCh. 2-1 Deductions from Gross Pay
Total questions: 10
Worksheet time: 5mins
Which of the following describes how to calculate net pay?
Subtract the total deductions from the net pay.
Add the total deductions to the gross pay.
Subtract the total deductions from the gross pay.
Subtract the total deductions from the take-home pay.
Workers may claim one withholding allowance for which of the following?
themselves
their spouse
each child or dependent
all of the above
Which of the following statements about Social Security & Medicare taxes is NOT true?
The Social Security tax rate of 6.2% is applied to a maximum wage of $102,000.
The taxes are used to provide disability, retirement, and survivors' benefits.
The taxes are used to provide hospital insurance for some disabled people and for people over 65.
none of the above
A withholding allowance is used to reduce the amount of tax withheld from each paycheck.
True
False
The amount of money deducted from worker's pay for federal income tax is called withholding tax.
True
False
After all deductions are subtracted from total wages, the remaining amount is called spending money.
True
False
Gross pay minus all deductions are subtracted from your wages is called net pay, or take-home pay.
True
False
A deduction is an amount of money ADDED to gross pay.
True
False
How much Medicare tax at 1.45% is deducted from $620 in gross wages?
$8.99
$10.99
$89.90
none of the above
Lindsey Banks is a Senior who earned $3,500 working at the local bakery. Her employer deducted $380 in withholding taxes. She has no adjustments to income or additional income. Her parents claim her as a dependent on their tax return. How much will Lindsey receive as a refund?
$380
$3,500
$1
none of the above
